1. The ability to read and to write: Greg became skilled in literacy when he was in elementary school and enjoyed poring over books about animals.
2. The understanding of written material or the expertise in a specific area: Computer literacy is certainly an advantage when seeking a job in the present world.

The level of skill in reading and writing that an individual needs to cope with everyday life: Max, whose native language was German, achieved the standard of functional literacy in California after completing college and language tests in English, and could then apply for a position in the firm of his choice.