For Real Effective Exchange Rate consider the following statements and select the correct answer from the codes given below:
(a) It refers to average of value of country's, currency in relation to an index of basket of values major countries' currencies.
(b) It refers to nominal ratio of a country's currency value to average value of a basket of currency.
1
Only (a) is true
2
Only (b) is true
3
Both (a) and (b) are true
4
Neither (a) nor (b) are true