B is corrent. In order to be a holder in due course of an instrument, that person must be a holder of a negotiable instrument, must give value for the instrument, must take it in good faith, and take the instrument without notice of certain problems with it.
A is incorrect. Although the holder will often be the payee of an instrument, the holder could possess a bearer instrument without being named on it.
C is incorrect. A holder may attain the status of a holder in due course even though prior holders did not.
D is incorrect. Although an instrument must be payable in money to be negotiable, this need not be US currency.
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