Which risk is associated with cheques?

The associated risk with cheques, particularly highlighted by the choice regarding the payer's account being insufficient, is primarily tied to the possibility of non-payment. When a cheque is written, the payer authorizes a specific amount to be drawn from their bank account. If sufficient funds are not available in that account when the cheque is presented for payment, the cheque will bounce, leading to significant consequences for both the issuer and the recipient. This situation not only disrupts financial transactions but can also incur fees and damage relationships between businesses or individuals.

While the other aspects mentioned in the other options pose their own challenges—such as post-dating creating a timing issue, foreign currency complicating transaction processing, and incorrect details leading to confusion or rejection—the core risk associated with the validity and reliability of a cheque is fundamentally linked to the payer's ability to honor the payment due to insufficient funds. Therefore, understanding this specific risk is crucial in the context of managing cheque transactions effectively.