What is basic computer literacy?

I don't know the answer to this question but my guess is that in most cases having basic understanding of how to use the computer itself is demonstrating how to  Turn it on/off , saving a file to disc, Opening word document , Saving it and light web browsing and composing and sending email. If your talking about Job posting they may require more than above mentioned in order to qualify to them as a person with basic computer literacy . Its kind of open to interpretation.

Yes, basic computer skills do include office software and file management at the very least.

I would consider the ability to log on and off, use a search engine to find information, be able to download and print things,  Complete familiarity  to Microsoft Office Suite including Word, Excel, Powerpoint, and be able to open edit and save a file,