Berms, in cross section, have a rounded, mound, mini-hill shape.
Terraces, in cross section, invariably have a big/mostly flat cross section, like a stair.
So far as I know, the number of berms does not change the berms into a terrace.
Here is a cartoon of a berm shape. Notice it has a relatively small flat spot on top, but mostly not flat:
http://mathcentral.uregina.ca/QQ/database/QQ.09.11/h/katherine1.html
This site has a cross section of both a terrace and a berm, the terrace being noticeably flatter on the uphill portion:
http://www.gnb.ca/0173/30/0173300013-e.asp
Terraces are more similar to steps on a stairway.
Yes, they are very similar. And in the real world there are things that might be halfway in between, so the differences might not be so neat as the definitions suggest.
Functionally, a berm is usually used to stop something, wind, or
water, or bullets or a view of the neighbors. A terrace is usually done to provide a flat area for agriculture on a steep hill that would otherwise be awkward to work on because of the steepness .
hth,
troy