I am new java user. Recently I have learned that out (Which we use at System.out.println) is a java standard output object.   
My question is; I never created this object by myself or haven't found any code which creates this object. So how it is accessible to use?
And more over I think System is a class name. If so, is out a static member of the System class, since we are accessing out without creating a new object of System class? 
Yes, System is a class and out is a static member variable of that class.
public final class System {
    public static final PrintStream out = ...;
    public static final PrintStream err = ...;
    public static final InputStream in = ...;
    ...
}
See the Java documentation for System class
yep, this lives on the System object:
public final static PrintStream out = null;
                        A good way to learn a language (and to have the right answers) is to look at the API source.
in System.java
...
public final static PrintStream out = null;
...
you don't need to create object in order to access static members
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