'Agency' sounds pretty similar to 'Free Will'. Is that the case?
Yes, that is the meaning of agency. I think we usually use the term "free agent" in the world today to mean someone who is not bound to obey someone else. We have "free agency" to decide whether or not we will obey God. We can choose to follow the devil if we so choose. Even though God gives us commandments, He does not force us to obey them, and does not force us to serve Him. We are free agents.
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