Ram is the memory that apps run in. The more ram, the more apps that can be memory-resident (loaded) at the same time. Also when an app is run, then another one is run, Android will keep the previous one in ram in case you want to go back to it. The more ram, the more previously run apps that can stay loaded or the more services/apps that can run in the background. Ram is not something you can update on a tablet or phone. Android will use what it has.
Storage is memory used to save your settings and applications. It is often confused with ram since they use the same units to describe the amount of each, (GB, MB, etc). Storage is often the sdcard you can replace on a phone or tablet on some devices so if you can replace your sdcard, you can increase the storage used by user files. If you run out of storage, you will have trouble adding pictures, movies, apps until you make room by deleting what you don't need.
"Faster" is determined by a combination of how much ram you have, the processor speed, the number of cpu cores (dual core is often faster than one core), the speed of the ram and storage, the speed of the gpu (graphics processor) and the OS type (GB usually faster than HC, since HC is more graphics intensive).