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gnome (noun) (in fairy tales and children's stories) dwarf living underground and guarding the treasure there; figure in stone or in wood of such a dwarf.
The gnome is a popular and common character in fairy tales and children's stories. The gnome is a little man wearing a pointed cap and having a long beard, living underground and guarding the treasure there. A figure in plastic, stone, etc., of such a figure is also a gnome.
- The gnome plays an important role in fairy tales and is believed to have magical powers. With his dwarfish size and long beard, he performs miracles.
- Swiss bankers are often called gnomes of Zurich because they guard the secret accounts of their customers just as the gnomes in children's stories guard the treasure underground.