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A Precision Number is the number of digits in a number.
No, it is not true. They reflect the precision of the number in the context of its use. If required to calculate the population density of Greater London in 2011, I would use the population in millions - not because that is the limit of the accuracy of the census results but because greater accuracy does not add significant value to the precision of the population density.
Not necessarily. I measure my height to 3 sig figs (for example 178 cm), but I may choose to report is as 180 cm (to 2 sf).
the precision of the answer must have the same number of significant digits as the measurement with the least significant digits- the site explains the rules and how to identify significant digits
The answer is limited to the number with the fewest digits of precision (digits after the decimal point). (2 digits of precision)