## Definition of effective

**:**producing a decided, decisive, or desired effect

- an effective policy

**:**impressive, striking

- a gold lamé fabric studded with effective … precious stones
- —Stanley Marcus

**:**ready for service or action

- effective manpower

**:**actual

- the need to increase effective demand for goods

**:**being in effect

**:**operative

- the tax becomes effective next year

**:**equal to the rate of simple interest that yields the same amount when the interest is paid once at the end of the interest period as a quoted rate of interest does when calculated at compound interest over the same period — compare nominal 4