What does two types of exceptions mean in Java?

In Java, there are two main types of exceptions: checked and unchecked (runtime).

• Checked Exceptions: Exceptions that the compiler checks during compilation. If a method can throw a checked exception that is not handled within that method, it must declare it using the throws keyword. The calling code must either catch this exception or also declare that it throws it. Examples: IOException, FileNotFoundException.
• Unchecked (Runtime) Exceptions: Exceptions that the compiler does not check during compilation. They usually indicate programming errors (e.g., division by zero, array index out of bounds, null pointer). Handling these exceptions is not mandatory, but possible. Examples: NullPointerException, ArrayIndexOutOfBoundsException, ArithmeticException.

The difference between them determines the developer's obligation to handle them explicitly. Checked exceptions require the developer to clearly specify how they will handle potential problems, while unchecked exceptions give the choice to handle them or not.