Very basic question- but totally confused.

I have Acronis TI Home 11, and know how to back up my files, but the thing that confuses me is setting up my back up locations. If I choose "Backup rules" and then "Maximum number of backups" and then set at 2 for example, does this mean it will only allow 1 full backup and then one incremental backup, or does it count 2 as 2 full backups and the specified number of incremental backups?