From the reference below:
"Cultural literacy is the ability to converse fluently in the idioms, allusions and informal content which creates and constitutes a dominant culture. From being familiar with street signs to knowing historical references to understanding the most recent slang, literacy demands interaction with the culture and reflection of it. Knowledge of a canonical set of literature is not sufficient in and of itself when engaging with others in a society, as life is interwoven with art, expression, history and experience. Cultural literacy requires familiarity with a broad range of trivia and implies the use of that trivia in the creation of a communal language and collective knowledge. Cultural literacy stresses the knowledge of those pieces of information which content creators will assume the audience already possesses."