I heard a lot of people talking about Django on various forums. But I am having a very basic question : What is meant by Framework and why Django is used.
After listening a lot about Django, I ran few chapters for Django (from Djangobook.com). After running these chapters, I am wondering how Django can be used to create a very simple website. (Website should have few pages like Home, Favorites, About, Contact linked to each other and will be providing static content).
Can Django be used for creation of such website? I searched a lot on internet but couldn't find any relevant examples, I only encountered with the examples for creation of blog, forum sites etc. If Django can be used for creation of this website, what should be the approach.
Can someone please explain this basic term "Framework" and its significance?
No. It's not for making websites. Your sample just sounds like you want plain old HTML.
Django is for creating web applications. That is, software, normally backed by a database, that includes some kind of interactivity, that operates through a browser. A Framework provides a structure and common methods for making this kind of software.
I think what you're looking for is a very simple CMS (Content Management System), there are many of those available in all kinds of languages/frameworks. Django has django-cms and mezzanine (among others).
What django is really awesome at is building dynamic websites really fast, you don't need to worry about most things, you just define your data model and off you go (almost). If you want to have a better insight into what's possible, have a look at the django tutorial (under "First Steps"), it gives you a good introduction to django and how to build websites using it.