Final answer:
People with mixed Indian and Spanish ancestry in Latin American countries are referred to as mestizos. This term has historical roots during the Spanish colonization. Today, the broader term 'Latino' is commonly used in the U.S. to describe people with Latin American heritage.
Step-by-step explanation:
In Latin American countries, people with mixed biological Indian and Spanish descent are referred to as mestizos. This term dates back to the Spanish conquest of the Americas, when intermarriages between Spanish settlers and local indigenous populations led to the emergence of a mixed-race demographic. Mestizos occupied an intermediate position in the colonial social hierarchy, below the Spanish-born peninsulares and American-born creoles, but above the pure indigenous and African populations. Over time, mestizos often played significant roles in the economy and society, serving as artisans, lower clergy, and small farmers.
In contrast to the specific term mestizo, the term Latino is nowadays more broadly used in the United States to refer to individuals with a Latin American heritage. However, Latino is not an exact synonym for mestizo, as it encompasses a broader range of ethnic backgrounds and national origins from Latin America. On official documents such as the US census, individuals of Latin American descent who do not fall into the recognized racial categories often select "other" or are identified as "Hispanic Other".