Can someone explain to me what the documents directory is on an iOS app and when to use it?

Here is what I believe at present:

To me, it seems to be a central folder where the user can store any files needed for the app.

This would be a different location than where Core Data stores its data?

It seems like each app gets its own documents directory.

I am free to create a subdirectory of the documents directory, like documents directory/images, or documents directory/videos?

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