The real value of money refers to what it can buy at a particular time, in terms of goods and services. It is determined by the purchasing power of the currency, which is the amount of goods or services that can be bought with a unit of currency. The purchasing power of money can change over time due to inflation or deflation, which can affect the value of money in terms of what it can buy. Therefore, the real value of money is not fixed and can vary depending on various economic factors.