Reasons For Using Basic Authentication vs. Digest Authentication vs. Windows Authentication

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I am studying for the Microsoft 70-486 exam and part of the exam covers the different types of challenge-response authentication protocols. The study guide that I am reading describes basic authentication which is in plain text, digest authentication which is hashed and windows authentication which uses a stronger encryption method. I am wondering if there is more to the story because this is a book written for a Microsoft exam. Is there a reason to ever use basic or digest authentication instead of windows authentication?

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