Final answer:
An open system is one that interacts with its environment by exchanging both energy and matter, in contrast to closed or isolated systems.
Step-by-step explanation:
The type of system that interacts with its environment is an open system. This kind of system can exchange both energy and matter with its surroundings. For instance, biological organisms are examples of open systems because they consume energy-storing molecules and release energy by doing work.
In contrast, a closed system exchanges energy but not matter with the surroundings, and an isolated system does not exchange either energy or matter, although this is more theoretical as truly isolated systems do not exist in practice. The concept of entropy also relates to systems, measuring the disorder within and indicating that energy transfers are not completely efficient; all biological systems follow these principles outlined by the laws of thermodynamics.