Based on the passage provided, the two correct answers about the cultural setting of the story would be:
- The story is set in a place where people climb mountains.
- The story is set in a place where people fear things needlessly.
These responses align with the depiction of the yamanba, who lives in the mountains and is feared by the villagers, suggesting a cultural context where mythological figures play a significant role in the people's perceptions and fears about natural occurrences.