What is the effect of the command 'mkdir new_directory'?

The command 'mkdir new_directory' is used to create a new directory with the name 'new_directory' in the current working directory. When executed, it successfully establishes a folder that can be used to organize files or other subdirectories. This command is fundamental in file system management, allowing users to structure their directories in a way that best suits their needs.

The other actions represented in the alternative choices do not align with the function of 'mkdir'. Renaming an existing directory requires a different command, such as 'mv', while removing a directory is done using the 'rmdir' command. Listing the contents of a directory typically utilizes the 'ls' command. Therefore, the correct functioning of 'mkdir' is specific to the creation of new directories, making the choice about creating 'new_directory' the appropriate interpretation of the command.