Which of the following loans will typically offer the lowest interest rate
a. payday loan
b. federal student loan
c. private loan
d. both a & b

The correct answer is B. Federal student loan. Both A & C (so answer D, too), that is payday and private loans, as they aren't issued by the government but by banks, require higher than standard interest rate. A. Payday loans are short-term, unsured loans which are actually considered a risky trap by many, with interest rates (in some incredible cases) reaching 60%, 300%, 700%. C. Private loans are safer than payday loans, but still much more expensive than federal ones, with an interest rate of even more than 18%.

You need to give the options.