Managing Your Kiva Credit Limit

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| By Jomay Liu
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Jomay Liu
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Quizzes Created: 6 | Total Attempts: 1,378
| Attempts: 114
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  • 1/12 Questions

    How is your credit limit determined?

    • Kiva adds the amount that you have fundraised to the amount of expected repayments for the current month.
    • Kiva conducts a risk assessment of your organization.
    • Kiva estimates the total volume of loans you are likely to post within a month.
    • Kiva subtracts the amount of expected repayments for the current month from the amount that you have fundraised.
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About This Quiz

Explore the essentials of managing your Kiva credit limit in this quiz. Understand how credit limits are determined, the calculation of available credit, and the statuses affecting credit usage. This quiz is vital for anyone managing finance in a Kiva-partnered organization.

Credit Management Quizzes & Trivia

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  • 2. 

    What is the formula that Kiva uses to calculate the amount of your credit limit that is still available for fundraising?

    • Amount Available = Credit Limit - Amount Used

    • Amount Available = Credit Limit - Expected Repayments for current month

    • Amount Available = Credit Limit - Amount Used + Expected Repayments for current month

    • Amount Available = Credit Limit - Amounted Used - Expected Repayments for current month

    Correct Answer
    A. Amount Available = Credit Limit - Amount Used + Expected Repayments for current month
    Explanation
    The formula that Kiva uses to calculate the amount of your credit limit that is still available for fundraising is Amount Available = Credit Limit - Amount Used + Expected Repayments for current month. This formula takes into account the initial credit limit, subtracts the amount that has already been used, and adds the expected repayments for the current month to determine the remaining available amount for fundraising.

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  • 3. 

    What is a Kiva credit limit?

    • The amount of funds that you have raised with Kiva

    • The amount of funds that you have repaid to Kiva

    • The maximum amount that you can have outstanding with Kiva

    • The maximum loan amount that you can post to Kiva

    Correct Answer
    A. The maximum amount that you can have outstanding with Kiva
    Explanation
    The Kiva credit limit refers to the maximum amount that a borrower can have outstanding with Kiva. It represents the highest loan amount that a borrower can have at any given time. This limit is set by Kiva to ensure responsible lending practices and to manage risk. It helps to prevent borrowers from taking on excessive debt and ensures that they can manage their loans effectively.

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  • 4. 

    Kiva calculates the amount of your credit limit that is currently being used by adding the outstanding balances for all loans that are in _________________ status(es).

    • Inactive, reviewed, and issue

    • Fundraising and raised

    • Fundraising, raised, and paying back

    • Paying back

    Correct Answer
    A. Fundraising, raised, and paying back
    Explanation
    Kiva calculates the amount of your credit limit that is currently being used by adding the outstanding balances for all loans that are in fundraising, raised, and paying back status. This means that the calculation takes into account the loans that are currently being funded, those that have already been fully funded, and those that are in the process of being repaid. By considering all these loan statuses, Kiva can determine the total amount of credit limit being utilized by the borrower.

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  • 5. 

    Why does Kiva add expected repayments for the current month back into your Amount Available?

    • Kiva assumes you will repay these funds on time and hence extends this amount as “float” for the current month.

    • Kiva assumes that these loans will be published on the Kiva website within the current month.

    • Kiva knows there is a risk you may not repay these funds on time and hence does not want to make this amount available for fundraising.

    • Kiva considers these funds to be “used” and hence does not want to make this amount available for fundraising.

    Correct Answer
    A. Kiva assumes you will repay these funds on time and hence extends this amount as “float” for the current month.
    Explanation
    Kiva adds expected repayments for the current month back into your Amount Available because they assume that you will repay these funds on time. By extending this amount as "float" for the current month, Kiva allows you to use these funds before they are actually received, giving you more flexibility in managing your finances.

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  • 6. 

    You are a new partner with a credit limit of $100,000. You post $20,000 in loans to the Kiva website for fundraising. What is your amount available?

    • $80,000

    • $20,000

    • $100,000

    • $120,000

    Correct Answer
    A. $80,000
    Explanation
    The amount available is $80,000 because the credit limit of $100,000 minus the posted loans of $20,000 equals $80,000.

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  • 7. 

    Your credit limit is $100,000, and your amount available is $60,000. You remit $10,000 to Kiva, which Kiva settles out to lenders. There are no further repayments expected this month. What is your amount available now?

    • $50,000

    • $70,000

    • $60,000

    • $100,000

    Correct Answer
    A. $70,000
    Explanation
    After remitting $10,000 to Kiva, the amount available would decrease by $10,000. Therefore, the new amount available would be $60,000 - $10,000 = $50,000. However, since there are no further repayments expected this month, the credit limit of $100,000 is still available. Hence, the correct answer is $50,000 (amount available) + $20,000 (remaining credit limit) = $70,000.

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  • 8. 

    Your credit limit is $100,000. You have used $97,000 and Kiva expects to receive $2,000 in repayments this month. You wish to post a new loan for $10,000. Is this a good idea?

    • Yes, you have sufficient amount available.

    • No, you do not have sufficient amount available.

    Correct Answer
    A. No, you do not have sufficient amount available.
    Explanation
    Since you have used $97,000 of your $100,000 credit limit and Kiva expects to receive only $2,000 in repayments this month, your available amount would be $100,000 - $97,000 + $2,000 = $5,000. Therefore, you do not have sufficient amount available to post a new loan for $10,000.

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  • 9. 

    The Credit Limit Calculation Report shows you ________________________.

    • All of the outstanding balances for delinquent loans

    • All of the expected repayments in the current month for delinquent loans

    • All of the amounts used to calculate your Credit Limit

    • All of the amounts used to calculate your Amount Available, Used Amount, and Expected Repayments

    Correct Answer
    A. All of the amounts used to calculate your Amount Available, Used Amount, and Expected Repayments
    Explanation
    The Credit Limit Calculation Report provides information on all the amounts used to calculate the Amount Available, Used Amount, and Expected Repayments. It includes details on the outstanding balances, expected repayments, and other factors that contribute to determining the credit limit. This report helps individuals or businesses understand their current credit situation and make informed decisions regarding their finances.

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  • 10. 

    How can you avoid posting loans in excess of your credit limit?

    • Use the Credit Limit Calculation Report.

    • There is a graph in step 2 of posting a new loan that shows you the amount that you can still post.

    • Get out your calculator and calculate the amount available each time you post a new loan

    • Kiva prevents you from doing so, by shutting off access to PA2 if you have exceeded your credit limit.

    Correct Answer
    A. There is a graph in step 2 of posting a new loan that shows you the amount that you can still post.
    Explanation
    The graph in step 2 of posting a new loan shows the remaining amount that can be posted, allowing users to avoid posting loans in excess of their credit limit. By referring to the graph, users can easily determine the maximum amount they can still post without exceeding their credit limit. This feature helps users stay within their credit limits and prevents them from accidentally posting loans that exceed their available credit.

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  • 11. 

    Please provide your feedback on this video (this question is not graded):  How would you rate this video?

    • 5 - Excellent

    • 4 - Very Good

    • 3 - Good

    • 2 - Fair

    • 1 - Poor

  • 12. 

    Optional: Please provide your feedback on this video (this question is not graded):  Do you have any comments about this video?

Quiz Review Timeline (Updated): Jul 19, 2024 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Jul 19, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 10, 2014
    Quiz Created by
    Jomay Liu
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