Please explain the use of java.math.MathContext

System.out.println(new BigDecimal("123.4",
                   new MathContext(4,RoundingMode.HALF_UP)));
System.out.println(new BigDecimal("123.4",
                   new MathContext(2,RoundingMode.HALF_UP)));
System.out.println(new BigDecimal("123.4",
                   new MathContext(2,RoundingMode.CEILING)));
System.out.println(new BigDecimal("123.4",
                   new MathContext(1,RoundingMode.CEILING)));

123.4
1.2E+2
1.3E+2
2E+2

BigDecimal original = new BigDecimal("1.235");
BigDecimal scaled = original.setScale(2, BigDecimal.ROUND_HALF_UP);

System.out.println(new BigDecimal("1234567890.123456789",
                   new MathContext(20)));

System.out.println(new BigDecimal("1234567890.123456789",
                   new MathContext(10)));

System.out.println(new BigDecimal("1234567890.123456789",
                   new MathContext(5)));

1234567890.123456789
1234567890
1.2346E+9