The term "2:1" typically refers to a ratio that compares two quantities. In this case, it indicates that for every two units of one quantity, there is one unit of another. This ratio can be applied in various contexts, such as cooking, where a recipe might call for two parts of flour to one part of sugar. In finance, a "2:1" ratio can describe leverage, meaning an investor uses two dollars of borrowed funds for every dollar of their own. This can amplify potential gains but also increases the risk of losses, making it important for investors to understand the implications of such a ratio.