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The exact composition of correction fluid varies between manufacturers, but most fluids are composed of an opacifying agent, a solvent (or thinner) and an adulterant 'fragrance' to discourage abuse. The opacifying agent can be composed of a mixture of titanium dioxide, latex, and other polymer resins.
Be aware of the longevity of correction fluid, and the reasons to use it. Correction fluid has an 18-month- to 2-year shelf life, however, if the cap is not fully closed or left off the bottle, the fluid inside will dry up fast, in as little as 24 to 48 hours.
Yes, its called all those things: "correction fluid" and "white-out" are probably the most common but "corrector" is also reasonable, in context. It is also often called by one of the brand names "Tippex" and "liquid paper" are possible.