Final answer:
An open system is a system that can exchange both matter and energy with its environment, as opposed to closed systems that can only exchange energy, and isolated systems that can exchange neither.
Step-by-step explanation:
In system theory, particularly in the context of chemistry and physics, the type of system that interacts with its environment by exchanging both matter and energy is known as an open system. Systems can generally be classified into three types: open systems, closed systems, and isolated systems. An open system allows both energy and matter to be transferred with its surroundings, such as a pot of boiling water where heat is supplied and water vapor is emitted. Conversely, a closed system can transfer energy but not matter with its surroundings, for example, a sealed pouch in boiling water. Lastly, an isolated system does not exchange either energy or matter with its environment, like an insulated thermos, although in reality, such a perfect system does not exist as over time, heat will slowly be transferred to the surroundings.