The correct answer is: B. provide facilities for converting saving into investments.
A new issue market is a market where new securities are issued and sold to the public. The most important economic function of a new issue market is to provide facilities for converting saving into investments. This means that it provides a way for people to save their money and invest it in companies or other businesses. This is important because it helps to finance economic growth.
Option A is incorrect because liquidity is the ability to quickly and easily convert an asset into cash. A new issue market does not provide liquidity to securities, as it is a market for new securities, which are not yet liquid.
Option C is incorrect because a new issue market does not give proper direction to the flow of capital. The flow of capital is determined by a number of factors, including interest rates, inflation, and economic growth. A new issue market does not have a significant impact on these factors.
Option D is incorrect because a new issue market does not give direction. It is a market where new securities are issued and sold to the public. It does not provide any direction to the economy.