"Why does the Bible refer to the moon as a light?"

Genesis 1: 16 And God made the two great lights—the greater light to rule the day and the lesser light to rule the night—and the stars. 

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In the creation account the Bible lists the two great lights, the Sun and the Moon, but the Moon doesn't actually generate light. Why would the Bible refer to it as a light? And why is the creation of the stars mentioned separately if the Sun is a star?

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Referenced Verses:
Genesis 1:16