The answer in short is both.  A really good indicator for figurative passages would be if the book or passage starts with the speaker or author saying he saw something in a dream or a vision.  Some other examples would be when Jesus spoke in parables.  Obviously these scriptures use figurative language.  Some other passages are not so obvious, scriptures like John 13:3-17 where Jesus washes the apostles feet.  Which I have discussed in Foot Washing.  Another would be Mark 9:45-47 where we are directed to cut off body parts that would cause us to be condemned.  Are you supposed to poke your eye out?  Maybe, if that was the source of your problem.  Obviously your eye isn’t making you sin, so what is the lesson?  Remove those things from your life that will cause you to lose your soul.  It’s better to not have something in this world than to be lost for an eternity.  So is EVERYTHING literal?  Absolutely not, but does that make the whole Bible a patchwork of nice thoughts and mere guidebook to a righteous life or a history book with a bunch of spiritual principles that one can choose to ignore?  God gave us this information for a reason.  Are you interested in what He wanted to tell you? (2 Timothy 2:15; Matthew 6:33; 1 Timothy 4:15)