An exact match domain is a domain name that uses keywords/phrases that you are trying to rank for in the search results within your chosen industry. An example would be a service you provide possibly with a location included.
Not unlike before the internet or if you use offline advertising your company/business name needs to give people a sense of what it is you do so they can find you when they need you.
You just have to be careful:
Comprehensive guide to exact match domains in 2020 - Search Engine Watch...there is a place for EMDs in 2020 and the right level of SEO can make it successful.
You do not get penalized just for having an EMD and in some cases, you will get a boost.
However, for the larger part, using exact match domains is going to be like walking on thin ice and could make you very prone to Google penalties...
Maybe those who have an exact match domain name could chime in with their experience in the past and today as to how effective using an exact match domain name is...