Final answer:
Cultural awareness is the type of cultural competency that focuses on recognizing and overcoming biases, prejudices, and assumptions about others, fostering respect for diversity.
Step-by-step explanation:
Cultural Competency: Awareness and Bias
The type of cultural competency that recognizes biases, prejudices, and assumptions about other people is Cultural awareness. This involves an understanding that we all have inherent biases based on our background, experiences, and societal norms. By becoming more culturally aware, we can identify these biases and work to overcome them, making a conscious effort to be more open-minded and respectful of cultural differences. In the context of anthropology and cultural studies, analyzing and addressing cultural biases helps us avoid the pitfalls of ethnocentrism and xenocentrism. It encourages us to appreciate the values and beauty of a multi-cultural world, contributing to more effective and respectful communication in our diverse society.
Enhancing cultural awareness is a critical component of civil and cultural competence which is essential for not just financial literacy, but for operating effectively in all areas of life. Gaining this awareness is a lifelong process that helps us to continually improve the way we interact with others and understand societal structures.