Final answer:
In chemistry, an open system can exchange matter with its surroundings, exemplified by a pot of boiling water, where matter is lost as water vapor and energy is supplied by the burner.
Step-by-step explanation:
An open system is defined as a system that can exchange both matter and energy with its surroundings. An example of an open system is a pot of boiling water, where the burner supplies energy in the form of heat while matter in the form of water vapor is lost as it boils. In contrast, a closed system can exchange energy but not matter with its surroundings, such as a sealed pouch of food in boiling water, and an isolated system, which is theoretical, exchanges neither.
In summary, the correct answer to the question is A) Exchanged with surroundings, as an open system can exchange matter and energy with the environment outside of its boundary.