Changing versioning settings for a document library

Some of the document libraries I have created will need to have content approval and version histories enabled.  This will give the owners of the libraries control over changes to documents.  Here is an overview of the options:

Content Approval

With this option enabled any new documents, or changes to existing document, won’t be made available until somebody with the appropriate permissions has approved them.

Document Version History

This option enables the automatic generation of document versions when changes are made.  Previous versions of documents can be viewed and rolled back if required.

Draft item security

Require Check Out

If this option is enabled then all documents must be checked out before they can be modified, blocking other users from making changes until it is checked in again.

This is how my settings look now: