The answer is: A: It encouraged people to borrow money to buy stocks.
With the boom, banks began to give loans where they once had not. This risk of borrowing money from the bank was, in most people's view, a rewarding risk.
Peace was to be established after the commencement of World War I. Hence Peace conference was held and more than thirty countries participated in it.
It was also called the Versailles peace conference and it also denoted the end of the wold war I.
Treaty possessed a cruel statement which Germany loathed. It was asked to pay huge amount as restitution expenses which created huge panic and tensions that lead to instability of German economy.