the quality or state of being literate, especially the ability to read and write.
possession of education: to question someone's literacy.
a person's knowledge of a particular subject or field: to acquire computer literacy.

1880–85; liter(ate) + -acy

antiliteracy, adjective

2. learning, culture. Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
literacy (ˈlɪtərəsɪ)
1.  the ability to read and write
2.  the ability to use language proficiently

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

formed in English and first attested 1883 (see literate); illiteracy dates back to 1650s.
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
Ability to interpret technical information and communicate to users with
  varying levels of technology literacy.
Of course, literacy was limited in the eighteenth century, and those who could
  read had limited access to books.
But the image alters as you read about the rise in literacy levels in the state.
It's insulting, giving the climb in literacy, knowledge and higher education in
  the population.
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