Java: Checked vs Unchecked Exceptions

Checked exceptions enforce handling; unchecked exceptions simplify method signatures.

Checked exceptions, like `IOException`, require explicit handling or declaration, which can enhance reliability by forcing the developer to consider error scenarios. However, this can clutter code and complicate method signatures. Unchecked exceptions, like `RuntimeException`, streamline code by not requiring explicit handling, but they can lead to runtime failures if not properly documented or anticipated. Consider a payment processing API: using checked exceptions ensures deliberate handling of transaction failures, while unchecked exceptions might be used to indicate unexpected issues like programming errors.