1. Folktale :
A tale or legend originating and traditionally told among a people or folk, especially one forming part of the oral tradition of the common people.
Any belief or story passed on traditionally, especially one considered to be false or based on superstition
Characteristics:
Characters go through tests to prove something (the good character must solve a problem)
Good v. Evil (has characters that good, others are bad)
Good is rewarded and evil is punished in the end (tales have a happy ending)

2. Magic Realism:
A literary genre or style associated especially with (and originating from) Latin America that incorporates fantastic or mythical elements into otherwise realistic fiction
Explore the strangeness, horror, and awe of the real world.
6 Key characteristics
Situations and Events that Defy Logic
Myths and Legends
Historic Context and Societal Concerns
Distorted Time and Sequence
Real World Settings
Matter-of-Fact Tone