What is the basic difference between the 2 approaches to exception handling. 1> try catch block and 2> specifying the candidate exceptions in the throws clause? When should you use which approach?

In the first approach as a programmer of the method, you urself are dealing with the exception. This is fine if you are in a best position to decide should be done in case of an exception. Whereas if it is not the responsibility of the method to deal with it's own exceptions, then do not use this approach. In this case use the second approach. In the second approach we are forcing the caller of the method to catch the exceptions, that the method is likely to throw. This is often the approach library creators use. They list the exception in the throws clause and we must catch them. You will find the same approach throughout the java libraries we use.