medium · GMAT Verbal

A national infrastructure bank lends to projects only after at least two private investors have already committed funds to the same project. Every project the bank has financed has gone on to attract additional private capital after the bank's loan was disbursed, and no project it funded has ever displaced a privately financed competitor.

Which of the following can be properly inferred from the statements above?

  1. No project financed by the bank lacked private investment before the bank lent to it.
  2. The bank's loans are the primary reason private capital flows into infrastructure.
  3. Without the bank, none of these projects would have attracted any private capital.
  4. Private investors will commit to any project the infrastructure bank approves.
  5. The infrastructure bank should expand its lending to projects with no private backers.

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