How can I check how how much RAM i am consuming so that i can optimize the amount of ram allocated?
Also, do we have to select application for which Ramdisk is to be used?
You can check the amounts of RAM used and available in the Windows Task Manager.
Note though, the RAM Disk isn't a magical solution to improve the performance of your system. While a RAM disk is useful in many scenarios, check out this article on whether you may or may not need it.