You do a study on how many men in a certain area read and write.
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If you are referring to the literacy test that the south gave to African American voters during the reconstruction period after the civil war, they were given a literacy test and, if they failed, they were denied their right to vote. Mind you, the tests were very, very difficult.
The literacy test basically says: Prove that you can speak English. If someone can't then we will be letting those who cannot communicate with us into our country
typically they were illiterate because they didn't have access to education and were unable to pass a literacy test. ^^^^ sometimes the case, but the people who gave the test made the standerd for the literacy tests incredibly high for blacks. it made it nearly impossible for the blacks to vote.
To be literate is to be able to read and write. There are 25 million people in the United States who are illiterate, so adult literacy is teaching adults to read and write.