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Where does the terms 'Hinayana' and 'Mahayana' come from? Who made them up?

They are often translated as "lesser vehicle" and "greater vehicle". I wonder about this translation. Is it correct? I think it sounds a bit degrading, as if Mahayana is somehow greater or better than Hinayana.

Are there better terms with which to speak about what is generally called 'Hinayana' and 'Mahayana'?

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