The answer is that it is neither one nor the other but all of the above. The Bible is a collection of moral tales, traditions, histories and instructions. To Jews and Christians it is inspired by God, written by humans, and organized by institutions. Biblical literalism, which did not exist until Gutenberg's press made it possible for laymen to possess and read scripture and which did not become popular until John Nelson Darby, does not work because the writings of the Bible were never meant to be taken as comprehensive, literal fact. Instructional stories never are, though that does not obviate the truths they tell.