Vector graphics produce sharper images with smooth edges compared to bitmap images which look more pixelated and blurry close up. Vector images can be enlarged without losing quality, unlike bitmaps. Formats like JPEGs are for photos and scanned files while TIFFs are for high quality images like scans. EPS files can contain layers and graphics. PSD files maintain layers and editing capabilities when opened in Photoshop. PDFs allow documents to maintain formatting when opened on other devices.