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folktale

By David Emery, About.com

Definition: A traditional narrative, usually anonymous, handed down orally -- e.g., fables, fairy tales, legends, etc.
Also Known As: folk tale, folk narrative
Examples: There are many Native American folktales concerning a legendary character known as "the Trickster," a teacher and beguiler of human beings who usually appears in the guise of an animal.

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