You probably know what the cat command does. The man page states:
cat - concatenate files and print on the standard output
../ means the parent directory of your current working directory. So, if there is a file called test at that location the cat command will print it for you on the terminal.
In the second example, the content of /etc/shadow (if you have access to), will be piped to wc command.
wc - print newline, word, and byte counts for each file
-l, --lines: print the newline counts
This will print the number of lines in /etc/shadow on the terminal (only the number of lines, not the content). The 2>&1 notation redirects file descriptor 2 (standard error) to file descriptor 1 (standard output).