I'm literal. Ask anyone. Ask James, my seven-year-old. He knows. Here's evidence:
James: Hey, Mom. what kind of animals live...
(aside, whispered in my ear): Hey, Mom. This is a joke.
Mom (nodding, whispering): Okay.
James: Hey, Mom. What kind of animals live on ranches?
Mom: What kind?
James: Horses Of Courses!
This is a cute joke, especially if you're seven.
But far cuter to me is the fact that he knew I wouldn't have known it was a joke, and he knew that if he hadn't given me fair warning, I would have responded by saying, "Uh...cows, horses, sheep..." or "What kind of ranch? It depends on the kind of ranch."
He is very patient with his literal mommy.