The question is based on a fallacy. Volumes can be reported in any number of significant figures.
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The more significant figures a number has the more accurate it is. In commercials for germicidal sprays, would you buy the product that is 99% effective or 99.99% effective?
Two sf.
Because density expressed in two significant figures depends on your accuracy of your measurements of mass and volume to calculate as well as any variables that you are expected to use.
42 has two significant figures.
687 to two significant figures is 690.
23.43 rounded to two significant figures is 23.