Agent: An actor and decision maker in an economic model.

Bank runs: The sudden withdrawal of deposits from a bank, usually resulting from popular belief that the bank might become insolvent. As more people withdraw their deposits, the likelihood of default increases, and this encourages further withdrawals.

Central bank: A bank designed to regulate and control the money supply of a nation.

Contractionary policy: Monetary policy that seeks to reduce the size of the money supply, often by means of increasing interest rates and reducing the overall amount of money being loaned.

Delegation: The assignment of authority and responsibility to another actor or entity to carry out specific activities. Delegation empowers a subordinate to make decisions, i.e. it is a shift of decision-making authority from one organizational level to a lower one.

Elasticity: In economics, a concept that indicates changes in certain parameters will yield a more responsive change in other variables of interest. With respect to currency, an elastic currency is one whose value can be manipulated through changes in the money supply.

Expansionary policy: Monetary policy that seeks to increase the size of the money supply, often by reducing interest rates.

Liquidity: In banking, both the ability to meet payment obligations, in terms of possessing sufficient assets that can be easily traded with minimal loss of value (money in particular), and the assets themselves.

Monetarism: The theory that management of monetary policy is the primary determinant of inflation and deflation, with fiscal policy measures (government spending) being less effective at influencing economic performance

Monetary policy: Directed by a nation's central bank, this is the control of the supply of money in the economy as well as the rate of interest.

Principals: A person or entity with the authority to authorize an agent to act to create one or more legal relationships with a third party.