DREYFUS LIQUID ASSETS, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus Liquid Assets,
Inc. For its annual reporting period ended December 31, 1995, your Fund
provided an annualized yield of 5.34%. The annualized effective yield after
compounding was 5.47%.*
THE ECONOMY
Additional evidence that economic activity remained sluggish and that
inflation continued to be under control moved the Federal Reserve Board to
further reduce the Federal Funds rate in December. (The Federal Funds rate is
the rate at which the nation's banks borrow money from each other and is a
benchmark for other short-term rates). This was the second reduction for this
important short-term rate in 1995, the first occurring in July. The latest
25-basis-point reduction in December put the rate at 5.50%. Major incentives
for this additional decrease were the favorable inflation report in November
and the generally slow rate of economic growth. As it did in July, the
Federal Reserve left unchanged the discount rate _ the rate at which the
Federal Reserve lends to member banks. The discount rate remained at 5.25%
throughout 1995.
Signs of economic slowdown increased during the latter half of the year.
Weakening retail sales and very modest industrial production lent credence to
fears about the possibility of recession. Consumer spending was inhibited
last year by the sluggish growth in wages and salaries and the continued
trend of corporate downsizing. As a result, consumer spending last year
culminated in one of the worst holiday sales periods since the business slump
in 1990-1991, despite steep price markdowns by retailers.
By November, the capacity utilization rate of the nation's factories
declined for the third consecutive month. This was a reflection of weakening
demand and further evidence of the diminishing pressure to raise prices.
Furthermore, inventories built up by year-end, another sign of slackening
demand.
The political stalemate in Washington over the balanced budget adds
additional uncertainty to the economy; ultimately an accord will be reached
and fiscal policy will likely be a restraining force on the economy. As we go
forward without a budget agreement, reductions in annually appropriated
spending will tend to inhibit the economy. With an agreement, the combination
of cuts in appropriations and other spending reductions could have the same
effect.
There are strong indications that inflation is under control. Until
mid-year 1995, fear of inflation was the overriding concern of the Federal
Reserve. Now the focus seems to have shifted to actions designed to avoid
recession. In an election year, few things are less desirable for political
incumbents than recession.
MONEY MARKET ENVIRONMENT/PORTFOLIO ACTIVITY
In the past 12 months, interest rates trended lower, as statistical
evidence revealed a backdrop of moderate to weak economic growth with subdued
inflation. Strong technical factors and positive psychology helped the market
sustain its fundamentally bullish tone throughout the period.
For example, the 3-month Certificates of Deposit had an average yield of
6.29% for the month of December 1994, compared to 5.62% for the month of
December 1995.
Within this framework, the average maturity of your Fund has been at the
long end of the industry average during the year, in an attempt to fully
maximize yield potential in the current declining interest rate environment.
Included in this report is a series of detailed statements about your
Fund's holdings and its financial condition. We hope they are informative.
Please know that we appreciate greatly your continued confidence in the Fund
and in The Dreyfus Corporation.
Very truly yours,
[Patricia A. Larkin signature logo]
Patricia A. Larkin
Portfolio Manager
January 15, 1996
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested daily.
<TABLE>
<CAPTION>
DREYFUS LIQUID ASSETS, INC.
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-3.3% AMOUNT VALUE
________ ________
<S> <C> <C>
Chemical Bank (London)
6.42%, 5/7/96........................................................... $ 25,000,000 $25,000,000
Harris Trust & Savings Bank (London)
5.40%, 4/30/96.......................................................... 25,000,000 25,000,000
Morgan Guaranty Trust Co. (London)
5.51%, 6/12/96.......................................................... 95,000,000 94,999,647
_______
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $144,999,647)..................................................... $ 144,999,647
=======
COMMERCIAL PAPER-50.8%
AES Shady Point Inc.
5.99%, 1/10/96(a)....................................................... $ 37,900,000 $ 37,844,098
AT&T Corp.
5.75%, 2/23/96.......................................................... 106,000,000 105,119,846
Abbey National North America
5.50%-5.80%, 1/31/96-6/27/96............................................ 132,700,000 131,038,887
Bankers Trust New York Corp.
5.81%, 3/15/96.......................................................... 25,000,000 24,710,167
Bear, Stearns & Co. Inc.
5.71%, 1/12/96.......................................................... 50,000,000 49,914,444
Chase Manhattan Corp.
5.88%, 5/10/96.......................................................... 50,000,000 48,983,472
Chemical Banking Corp.
5.40%-5.83%, 1/16/96-5/15/96............................................ 75,000,000 74,388,361
Den Danske Corp. Inc.
5.52%-6.41%, 1/4/96-6/12/96............................................. 234,000,000 233,063,250
Ford Motor Credit Co.
5.78%-6.33%, 1/9/96-2/21/96............................................. 70,000,000 69,571,486
General Electric Capital Corp.
5.40%-5.69%, 4/9/96-6/24/96............................................. 30,000,000 29,335,161
General Electric Capital Services Inc.
5.38%-6.26%, 1/29/96-6/25/96............................................ 134,000,000 131,494,621
General Motors Acceptance Corp.
5.69%-5.82%, 2/7/96-5/1/96.............................................. 225,000,000 222,721,284
Generale Bank Inc.
6.35%, 1/19/96.......................................................... 25,000,000 24,924,250
Goldman Sachs Group L.P.
5.72%, 3/6/96........................................................... 50,000,000 49,491,736
Internationale-Nederlanden (U.S.) Funding Corp.
5.43%, 6/20/96.......................................................... 38,000,000 37,045,155
DREYFUS LIQUID ASSETS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
COMMERCIAL PAPER (CONTINUED) AMOUNT VALUE
________ ________
Lehman Brothers Holdings Inc.
5.65%, 5/10/96-6/7/96(b)................................................ $ 90,000,000 $ 90,000,000
Lehman Brothers Holdings Inc.
5.90%, 1/31/96.......................................................... 25,000,000 24,878,125
Merrill Lynch & Co. Inc.
5.57%-5.79%, 1/31/96-3/29/96............................................ 90,000,000 89,301,797
Mitsubishi Motors Credit of America, Inc.
5.92%-6.06%, 1/5/96-1/19/96(a).......................................... 133,000,000 132,697,520
Morgan Stanley Group Inc.
5.47%-5.82%, 1/12/96-6/20/96............................................ 145,000,000 144,069,233
NationsBank Corp.
5.61%, 5/28/96.......................................................... 50,000,000 48,877,667
Sears Roebuck Acceptance Corp.
5.80%-5.86%, 1/18/96-2/6/96............................................. 150,000,000 149,301,888
SwedBank Inc.
5.77%-5.88%, 1/16/96-2/23/96............................................ 225,000,000 223,599,431
Toronto-Dominion Holdings USA Inc.
6.44%, 1/5/96........................................................... 50,000,000 49,965,889
UBS Finance (DE) Inc.
5.90%, 1/2/96........................................................... 43,000,000 42,992,953
_______
TOTAL COMMERCIAL PAPER
(cost $2,265,330,721)................................................... $2,265,330,721
=======
CORPORATE NOTES-15.3%
Bear, Stearns & Co. Inc.
5.65%-5.83%, 7/11/96-11/18/96(b)........................................ $ 175,000,000 $ 175,000,000
General Electric Capital Corp.
5.68%-5.85% , 2/9/96-4/5/96(b).......................................... 185,500,000 185,506,322
Lehman Brothers Holdings Inc.
5.75%-5.95% , 5/16/96-1/6/97(b)......................................... 98,000,000 98,000,000
Merrill Lynch & Co. Inc.
5.85%-5.89%, 3/13/96-4/22/96(b)......................................... 125,000,000 124,988,952
PHH Corp.
5.63% , 9/18/96(b)...................................................... 100,000,000 99,972,188
_______
TOTAL CORPORATE NOTES
(cost $683,467,462)..................................................... $ 683,467,462
=======
DREYFUS LIQUID ASSETS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
SHORT-TERM BANK NOTES-18.0% AMOUNT VALUE
________ ________
Bank of New York, N.Y.
5.50%, 6/12/96.......................................................... $ 42,000,000 $ 42,000,000
Comerica Bank
5.65% , 9/18/96(b)...................................................... 50,000,000 49,978,311
First National Bank of Boston
5.61%-5.77%, 6/7/96-11/18/96(b)......................................... 150,000,000 150,000,000
First National Bank of Boston
5.81%, 6/5/96........................................................... 40,000,000 40,000,000
Fleet Bank of New York N.A.
5.78%-5.82%, 1/5/96-2/20/96............................................. 150,000,000 150,000,000
Morgan Guaranty Trust Co.
5.95%-6.07%, 1/3/96-8/21/96............................................. 123,000,000 123,000,000
NBD Bank, NA
6.33%-6.50%, 1/4/96-1/29/96............................................. 200,000,000 200,000,000
PNC Bank NA
5.50%, 9/18/96.......................................................... 10,000,000 10,005,327
Society National Bank
6.46%, 4/25/96.......................................................... 40,000,000 39,968,700
_______
TOTAL SHORT-TERM BANK NOTES
(cost $804,952,338)..................................................... $ 804,952,338
=======
U.S. GOVERNMENT AGENCIES-10.1%
Federal Farm Credit Banks,
Floating Rate Notes
5.57%, 8/14/96 (b)...................................................... $ 100,000,000 $ 99,970,218
Federal Home Loan Banks,
Floating Rate Notes
5.65%, 4/27/98 (b)...................................................... 50,000,000 50,174,351
Federal National Mortgage Association,
Floating Rate Notes
5.84%-5.93%, 9/27/96-7/25/97 (b)........................................ 300,000,000 299,916,107
_______
TOTAL U.S. GOVERNMENT AGENCIES
(cost $450,060,676)..................................................... $ 450,060,676
=======
DREYFUS LIQUID ASSETS, INC.
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
REPURCHASE AGREEMENTS-2.2% AMOUNT VALUE
________ ________
Goldman, Sachs & Co.
3.00%, dated 12/29/95, due 1/2/96
in the amount of $90,862,277 (fully collateralized
by $96,600,000 U.S. Treasury Bills due 10/17/96,
value $92,740,293)...................................................... $ 90,832,000 $ 90,832,000
SBC Capital Markets
5.90%, dated 12/29/95, due 1/2/96
in the amount of $8,005,244 (fully collateralized
by $7,950,000 U.S. Treasury Notes 6.25% due
8/31/96, value $8,163,738).............................................. 8,000,000 8,000,000
_______
TOTAL REPURCHASE AGREEMENTS
(cost $98,832,000)...................................................... $ 98,832,000
=======
TOTAL INVESTMENTS
(cost $4,447,642,844)........................................... 99.7% $4,447,642,844
==== =======
CASH AND RECEIVABLES (NET).......................................... .3% $ 12,295,380
==== =======
NET ASSETS ................................................... 100.0% $4,459,938,224
==== =======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Backed by an irrevocable letter of credit.
(b) Variable interest rate-subject to periodic change.
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIQUID ASSETS, INC.
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a,b)......................... $4,447,642,844
Cash.................................................................... 34,976,147
Receivable for investment securities sold............................... 49,787,000
Interest receivable..................................................... 29,146,988
Prepaid expenses and other assets....................................... 1,376,512
_______
4,562,929,491
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 1,832,367
Payable for investment securities purchased............................. 99,507,736
Accrued expenses and other liabilities.................................. 1,651,164 102,991,267
______ _______
NET ASSETS.................................................................. $4,459,938,224
=======
REPRESENTED BY:
Paid-in capital......................................................... $4,460,889,104
Accumulated undistributed investment income-net......................... 1,230,147
Accumulated net realized (loss) on investments.......................... (2,181,027)
_______
NET ASSETS at value applicable to 4,461,764,742 shares outstanding
(25 billion shares of $.10 par value Common Stock authorized)........... $4,459,938,224
=======
NET ASSET VALUE, offering and redemption price per share
($4,459,938,224 / 4,461,764,742 shares)................................. $1.00
===
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 283,232,908
EXPENSES:
Management fee-Note 2(a).............................................. $21,804,228
Shareholder servicing costs-Note 2(b)................................. 13,749,111
Custodian fees........................................................ 279,614
Prospectus and shareholders' reports.................................. 252,000
Professional fees..................................................... 155,666
Registration fees..................................................... 104,033
Directors' fees and expenses-Note 2(c)................................ 81,813
Miscellaneous......................................................... 318,636
______
TOTAL EXPENSES.................................................... 36,745,101
_______
INVESTMENT INCOME-NET....................................................... 246,487,807
NET REALIZED GAIN ON INVESTMENTS-Note 1(b).................................. 1,371,818
_______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $247,859,625
=======
See notes to financial statements.
</TABLE>
<TABLE>
<CAPTION>
DREYFUS LIQUID ASSETS, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
________________________________________
1994 1995
________ ________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................... $ 169,276,064 $ 246,487,807
Net realized gain on investments.................................... 329,169 1,371,818
________ ________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. 169,605,233 247,859,625
________ ________
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net............................................... (168,623,162) (245,910,562)
________ ________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold....................................... 14,805,667,408 16,013,690,375
Dividends reinvested................................................ 167,952,577 244,666,772
Cost of shares redeemed............................................. (14,939,362,012) (16,663,741,867)
________ ________
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS. 34,257,973 (405,384,720)
________ ________
TOTAL INCREASE (DECREASE) IN NET ASSETS....................... 35,240,044 (403,435,657)
NET ASSETS:
Beginning of year................................................... 4,828,133,837 4,863,373,881
________ ________
End of year (including undistributed investment income-net:
$652,902 in 1994 and $1,230,147 in 1995).......................... $ 4,863,373,881 $ 4,459,938,224
======== ========
</TABLE>
[CAPTION]
<TABLE>
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED DECEMBER 31,
____________________________________________________________
PER SHARE DATA: 1991 1992 1993 1994 1995
____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
____ ____ ____ ____ ____
INVESTMENT OPERATIONS:
Investment income-net........................ .0570 .0341 .0261 .0348 .0532
____ ____ ____ ____ ____
Net realized gain (loss) on investments...... (.0001) - (.0001) .0001 .0003
____ ____ ____ ____ ____
Total from Investment Operations.......... .0569 .0341 .0260 .0349 .0535
____ ____ ____ ____ ____
DISTRIBUTIONS;
Dividends from investment income-net......... (.0570) (.0341) (.0261) (.0347) (.0531)
____ ____ ____ ____ ____
Net asset value, end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 5.87% 3.47% 2.64% 3.53% 5.45%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .67% .72% .77% .76% .79%
Ratio of net investment income to average net assets 5.75% 3.43% 2.62% 3.49% 5.33%
Net Assets, end of year (000's Omitted)...... $6,200,255 $5,502,100 $4,828,134 $4,863,374 $4,459,938
See notes to financial statements.
</TABLE>
DREYFUS LIQUID ASSETS, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company. Premier Mutual Fund
Services, Inc. (the "Distributor") acts as the distributor of the Fund's
shares, which are sold to the public without a sales charge. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109, is a wholly-owned
subsidiary of FDI Distribution Services, Inc., a provider of mutual fund
administration services, which in turn is a wholly-owned subsidiary of FDI
Holdings, Inc., the parent company of which is Boston Institutional Group,
Inc. The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank, N.A.
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio valuation
and dividend and distribution policies to enable it to do so. There is no
assurance, however, that the Fund will be able to maintain a stable net asset
value of $1.00.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost, which
has been determined by the Fund's Board of Directors to represent the fair
value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income is recognized on the accrual basis. Cost of investments represents
amortized cost.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Fund's Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Fund's custodian and, pursuant
to the terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
and pay dividends from investment income-net on each business day. Dividends
from net realized capital gain are normally declared and paid annually, but
the Fund may make distributions on a more frequent basis to comply with the
distribution requirements of the Internal Revenue Code. To the extent that
net realized capital gain can be offset by capital loss carryovers, it is the
policy of the Fund not to distribute such gain.
On January 2, 1996, the Fund declared a cash dividend of approximately
$.0006 per share from undistributed investment income-net which includes
investment income-net for Saturday, December 30, 1995 and Sunday, December
31, 1995.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal Revenue Code, and to make distributions of taxable
income sufficient to relieve it from substantially all Federal income and
excise taxes.
DREYFUS LIQUID ASSETS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $2,181,000
available for Federal income tax purposes to be
applied against future net securities profits, if any, realized subsequent to
December 31, 1995. If not applied, $2,110,000 expires in 1997 and $71,000
expires in 1998.
At December 31, 1995, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee is based on the average daily value of the Fund's net
assets and is computed at the following annual rates: 1/2 of 1% of the first
$1.5 billion; 48/100ths of 1% of the next $500 million; 47/100ths of 1% of
the next $500 million; and 45/100ths of 1% over $2.5 billion. The fee is
payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, interest on
borrowings, brokerage commissions and extraordinary expenses, exceed 1% of
the average value of the Fund's net assets for any full year. No expense
reimbursement was required pursuant to the Agreement for the year ended
December 31, 1995.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $398,466 for the period from
December 1, 1995 through December 31, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation, a wholly-owned subsidiary of the Manager, an
amount not to exceed an annual rate of .25 of 1% of the value of the Fund's
average daily net assets for certain allocated expenses of providing personal
services and/or maintaining shareholder accounts. The services provided may
include personal services relating to shareholder accounts, such as answering
shareholder inquiries regarding the Fund and providing reports and other
information, and services related to the maintenance of shareholder accounts.
During the year ended December 31, 1995, the Fund was charged an aggregate of
$5,403,169 pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $6,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS LIQUID ASSETS, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS LIQUID ASSETS, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Liquid Assets, Inc., including the statement of investments, as of
December 31, 1995, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Liquid Assets, Inc. at December 31, 1995, the results of
its operations for the year then ended, the changes in its net assets for
each of the two years in the period then ended, and the financial highlights
for each of the indicated years, in conformity with generally accepted
accounting principles.
[Ernst and Young LLP signature logo]
New York, New York
February 2, 1996
[Dreyfus lion "d" logo]
DREYFUS LIQUID ASSETS, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained
in the Prospectus, which must
precede or accompany this report.
Printed in U.S.A. 039AR9512
[Dreyfus logo]
Liquid
Assets, Inc.
Annual Report
December 31, 1995
