When to use throws in a Java method declaration?

Question

So I thought I had a good basic understanding of exception-handling in Java, but I was recently reading some code that gave me some confusion and doubts. My main doubt that

Answer 1

You only need to include a throws clause on a method if the method throws a checked exception. If the method throws a runtime exception then there is no need to do so.

See here for some background on checked vs unchecked exceptions: http://download.oracle.com/javase/tutorial/essential/exceptions/runtime.html

If the method catches the exception and deals with it internally (as in your second example) then there is no need to include a throws clause.