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Consider the following statements.

I. Nominal Effective Exchange Rate (NE'ER) is the weighted average of bilateral exchange rate of the home currency in the terms of foreign currencies.

II. Real Effective Exchange Rate (REER) is used to measure the movements of exchange rate as well as inflation differentials between India and its major trading partners.

Which of the statements given above is/are correct?

A)  Only I             

B)  Only II

C)  Both I and II

D)  Neither I nor II

E)  Either I or II