Is $700 b bailout an example of a federal reserve open market purchase

[scorpio8808]

Is the proposed $700 billion bailout an example of a federal reserve open market purchase, and will it mean the reserves of commercial banks increase by $700 billion, allowing them to issue loans of, for example, $3.5 trillion if the reserve ratio is 1:5?

Thanks

[duffmann808]

@Ed Fleck

Is the proposed $700 billion bailout an example of a federal reserve open market purchase, and will it mean the reserves of commercial banks increase by $700 billion, allowing them to issue loans of, for example, $3.5 trillion if the reserve ratio is 1:5?

Thanks

Not necessarily will the reserves of banks increase by $700 Billion, because it likely would not be banks buying the Treasury securities for sale.