IPA: /ˈlɪtərəsi/
KK: /ˈlɪtərəsi/
The ability to read and write, as well as understanding and knowledge in a specific area.
Improving literacy rates is essential for the development of a society.
Literacy is formed from "liter" (from Latin "littera", meaning letter) and the suffix "-acy" (meaning the state or quality of). The word "literacy" refers to the state or quality of being able to read and write, specifically in relation to letters and written language.
Think of 'letters' ('liter') and the 'state of being' ('-acy') able to read and write — that's what literacy means.