A farmer has an income of $500 per season. He applied for a loan for $200. the

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Question:

A farmer has an income of $500 per season. He applied for a loan for $200. the sanctioning officer calculated the earnings of the farmer and declared that the farmer saves $150 per season; therefore, the officer was satisfied that the farmer will repay the loan. However, in the final decision, officials rejected the loan request of the farmer.

Which principle did the officer apply to reject the loan?