Backing ratio (支持比率)

The backing ratio (支持比率 zhī chí bǐ lǜ) indicates the fraction of the money supply that is backed by reserves on the central bank balance sheet.

Part 1: Breakdown of Words

• Backing (支持 zhī chí) derives from:
  • “支” (zhī) as in “pay” (支付 zhī fù), “dominate” (支配 zhī pèi), “support” (支撑 zhī chēng), or “pillar” (支柱 zhī zhù).
  • “持” (chí) as in “maintain” (维持 wéi chí), or “persevere” (坚持 jiān chí).
• Ratio (比率 bǐ lǜ) derives from:
  • “比” (bǐ) as in “compare” (比较 bǐ jiào), or “contrast” (对比 duì bǐ).
  • “率” (lǜ) as in “probability” (概率 gài lǜ), or “mortality rate” (死亡率 sǐ wáng lǜ).

Part 2: Examples:

1. Equity backing ratio (股权支持比率 gǔ quán zhī chí bǐ lǜ).