Memory units are devices that store binary information in groups of bits called words. They contain a number of words and number of bits per word. Memory units store programs and data that the CPU needs, as well as backup information not currently required by the CPU. There are two main types of memory - random access memory (RAM), where data can be accessed randomly in the same time, and sequential access memory, where access time varies. RAM can perform both read and write operations and allow random access to any location in the same time. Common types of RAM include SRAM and DRAM, while ROM is read-only memory used to permanently store programs.