Answer:
Folktales are stories that grew out of the lives and imaginations of the people, or folk. They have always been children’s favorite type of folk literature.
Their popularity springs from their imaginative characters, their supernatural elements, their focus on action, their simple sense of justice, their happy endings, and the fundamental wisdom they contain.
Many people use the terms folktale and fairy tale interchangeable, though few of these tales actually contain fairies. “Fairy tales are unreal but they are not untrue; they reflect essential developments and conditions of man’s existence” (cited in Lüthi, 1976, Once Upon a Time: On the Nature of Fairy Tales, p. 70)