Naruto thought that XYLOPHONES were really made of earth.
to exist ★★★★☆ 存 (be aware of) + 在 (be real) = 存在 (to exist)
the present time ★★☆☆☆ 現 (reality) + 在 (be real) = 現在 (the present time)
the present time - but also can mean "the present situation" or "the staus quo."