Final answer:
The foreign exchange rate of the dollar is not fixed, but rather operates on a floating exchange rate system along with other major currencies, meaning it is determined by the market and can fluctuate significantly.
Step-by-step explanation:
The statement that the foreign exchange rate of the dollar is fixed against most major currencies is False. The U.S. dollar, along with the euro, the British pound, the Australian dollar, and the Japanese yen, are among the most commonly traded currencies on foreign exchange markets. These major currencies operate on a floating exchange rate system, which allows the market to determine their exchange rates rather than being fixed. Approximately 40% of the world’s countries use a floating exchange rate, including those with major currencies, which fluctuates with market forces and can experience significant changes in a short period of time.