What type of reaction involves both bonds being made and broken, also known as displacement reactions?

The type of reaction that involves both bonds being made and broken, referred to as displacement reactions, is indeed classified as exchange reactions. In these reactions, components of two different molecules swap places, resulting in the formation of new products and the breaking of existing bonds. This dual activity of forming new bonds while simultaneously breaking others is the hallmark of exchange reactions.

Exchange reactions are significant in various biological processes, including metabolic pathways, where substrates are transformed into products through the reorganization of their chemical bonds. Understanding these reactions is crucial for grasping how cellular activities and functions are maintained. The other types of reactions listed do not encompass the simultaneous making and breaking of bonds to the same extent, which differentiates exchange reactions in their mechanism and outcomes.