Logic
Interviewers ask this question to get an idea how good the candidate is or what can be a first few set of questions. In first go, this seems to be a very easy question, like a candidate might translate this roughly into "How much comfortable are you in using XYZ in your projects?". When I see the broader picture, I understand the actual answer that a candidate delivers is "(how much he knows) out of (how much he thinks exists in the world)" which is not wrong, but also not valid.
If a candidate doesn't know the vastness of the concept, he would never be able to justify his answer. A person who knows how vast that particular technology is, should be able to answer honestly, and things can be expected to go smooth for him during interview.
Experience:
Last year, during one of my interviews I was asked to rate myself in JavaScript. I answered "3/10". The interviewer was shocked. He asked me the reason for such a low rating. I shared my views with him. He accepted my justification, and then he named a few topics and asked my familiarity with those concepts. I answered what I knew and things went well.
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