Concept:Discounting a bill of exchange means the holder sells the accepted bill to a bank before its maturity date to obtain cash immediately.
Explanation:An accepted bill of exchange is a written order where the drawee agrees to pay a specified sum on a future date.
The holder does not have to wait until maturity to receive the money.
The holder can take the bill to his own commercial bank, which will deduct a discount charge and pay the remaining amount at once.
When the bill matures, the bank collects the full face value from the drawee.
Discounting is a normal banking service offered by the commercial bank where the holder maintains an account.
It is not done by the central bank, because the central bank deals with government and commercial banks, not individual bill holders.
Discounting does not require more than one bank; a single bank transaction is enough.
The phrase "his bank" specifically refers to the holder's own commercial bank, which is the correct and conventional practice.
Therefore, the holder discounts the accepted bill at his own bank.
Answer:C. his bank