If I understand correctly, Git has two sorts of repositories: one called local, another called remote. My questions are extremely naive ones about the two types of repositories.

Is that correct to say 

* Git local repository is the one on which we will make local changes, typically this local repository is on our computer.
* Git remote repository is the one of the server, typically a machine situated at 42 miles away.

Another question: some tutorial shows me this workflow

* mkdir myproject
* cd myproject
* git init
* touch README
* git add README
* git commit -a -m "

I see that `git init` creates myproject a local repository. What I don't understand is the 
`git commit` command. If I have not yet set a remote repository, how can Git know where to commit my `README` file??

I hope I was clear. 

[EDIT] The way I am using Git might be different from others:
I use a private Git repository to backup my codes. So I think I do need a remote repository. The local repository should be nonsense in this case. Am I right? Thanks for your clarification. These are the most naive questions that I cannot find replies anywhere else...