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From The Collaborative International Dictionary of English v.0.48:
Handy \Hand"y\ (h[a^]nd"[y^]), a. [Compar. Handier (-[i^]*[~e]r); superl. Handiest.] [OE. hendi, AS. hendig (in comp.), fr. hand hand; akin to D. handig, Goth. handugs clever, wise.] 1. Performed by the hand. [Obs.] [1913 Webster] To draw up and come to handy strokes. --Milton. [1913 Webster] 2. Skillful in using the hand; dexterous; ready; adroit. "Each is handy in his way." --Dryden. [1913 Webster] 3. Ready to the hand; near; also, suited to the use of the hand; convenient; valuable for reference or use; as, my tools are handy; a handy volume. [1913 Webster] 4. (Naut.) Easily managed; obedient to the helm; -- said of a vessel. [1913 Webster]