In a(n) ______________, two parties contract to deliver one currency in exchange for another at specific times over some fixed interval of time.

A) Purchasing power parity arrangement.
B) Interest rate swap.
C) Eurobond trade.
D) Currency swap.
E) Triangle arbitrage.

In a currency swap, two parties agree to exchange one currency for another over a set period of time, with specific amounts and dates agreed upon. This financial instrument is used to secure cheaper debt, to hedge against foreign exchange rate fluctuations, or to gain access to foreign capital markets.