DREYFUS MONEY MARKET INSTRUMENTS, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to provide you with this report on Dreyfus Money Market
Instruments, Inc. - Money Market Series and Government Securities Series. For
its annual reporting period ended December 31, 1995, the Money Market Series
provided a yield of 5.33% and the Government Securities Series provided a
yield of 5.06%. The effective yields after compounding for the two series
were 5.46% and 5.18%, respectively.*
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 all 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. The lethargic pace of 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, we believe 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, strong fundamental and positive technical factors
influenced interest rate performance. Statistical data consistently revealed
weak to modest economic growth with a favorable inflation outlook, prompting
interest rates to gradually trend lower.
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, and the 3-month Treasury Bill averaged 5.69% for the month of
December1994 compared to 5.08% for the month of December 1995.
In response the average maturity of your Fund was extended during the
past fiscal year in an attempt to fully maximize yield potential in a
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.
* Effective yield is based upon dividends declared daily and reinvested
monthly.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-21.5% AMOUNT VALUE
_______ _______
<S> <C> <C>
Bank of Tokyo Ltd. (Yankee)
6.06%, 4/8/96........................................................... $ 7,000,000 $ 7,000,000
Bayerische Vereinsbank AG (London)
5.88%, 12/6/96.......................................................... 7,000,000 7,000,000
Canadian Imperial Bank of Commerce (London)
5.82%, 12/20/96......................................................... 7,000,000 7,000,000
Mitsubishi Bank Ltd. (Yankee)
6.55%, 1/31/96.......................................................... 3,000,000 3,000,000
Sumitomo Bank Ltd. (Yankee)
6.12%, 4/1/96........................................................... 7,000,000 7,000,000
_______
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $31,000,000)...................................................... $ 31,000,000
=======
BANKERS ACCEPTANCES-3.4%
Dai-Ichi Kangyo Bank Ltd. (Yankee)
5.81%, 3/6/96
(cost $4,948,271)....................................................... $ 5,000,000 $ 4,948,271
=======
COMMERCIAL PAPER-26.7%
Den Danske Corp. Inc.
5.52%, 6/12/96.......................................................... $ 7,000,000 $ 6,829,801
Ford Motor Credit Co.
6.34%, 1/26/96.......................................................... 3,000,000 2,987,396
General Electric Capital Services Inc.
5.64%, 4/25/96.......................................................... 7,000,000 6,876,790
General Motors Acceptance Corp.
5.81%, 2/9/96........................................................... 7,000,000 6,956,775
Spintab AB
5.90%, 4/11/96.......................................................... 7,000,000 6,887,469
SwedBank Inc.
5.88%, 2/20/96.......................................................... 5,000,000 4,960,347
UBS Finance (Delaware) Inc.
5.90%, 1/2/96........................................................... 3,000,000 2,999,509
_______
TOTAL COMMERCIAL PAPER
(cost $38,498,087)...................................................... $ 38,498,087
=======
CORPORATE NOTES-23.6%
Avco Financial Services Inc.
5.78%, 4/1/96 (a)....................................................... $ 5,000,000 $ 5,000,000
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
PRINCIPAL
CORPORATE NOTES (CONTINUED) AMOUNT VALUE
_______ _______
Bear Stearns Companies Inc.
5.23%, 1/26/96 (a)...................................................... $ 8,000,000 $ 8,000,000
General Electric Capital Corp.
5.85%, 2/9/96 (a)....................................................... 7,000,000 7,000,000
Lehman Brothers Holdings Inc.
5.95%, 5/16/96 (a)...................................................... 7,000,000 7,000,000
Merrill Lynch & Co. Inc.
5.81%, 7/2/96 (a)....................................................... 7,000,000 6,999,325
_______
TOTAL CORPORATE NOTES
(cost $33,999,325)...................................................... $ 33,999,325
=======
SHORT-TERM BANK NOTES-3.5%
PNC Bank NA
5.50%, 9/18/96
(cost $5,002,663)....................................................... $ 5,000,000 $ 5,002,663
=======
U.S. GOVERNMENT AGENCIES-20.8%
Federal Farm Credit Banks
Floating Rate Notes
5.58%-5.67%, 11/7/96-10/23/98 (a)....................................... $ 10,000,000 $ 9,988,234
Federal National Mortgage Association
Floating Rate Notes
5.96%, 6/20/97(a)....................................................... 20,000,000 19,997,262
_______
TOTAL U.S. GOVERNMENT AGENCIES
(cost $29,985,496)...................................................... $ 29,985,496
=======
TIME DEPOSITS-.2%
Republic National Bank of New York (London)
3%, 1/2/96
(cost $302,000)......................................................... $ 302,000 $ 302,000
=======
TOTAL INVESTMENTS
(cost $143,735,842)........................................... 99.7% $143,735,842
==== =======
CASH AND RECEIVABLES (NET)........................................ .3% $ 436,533
==== =======
NET ASSETS ............................................ 100.0% $144,172,375
==== =======
</TABLE>
NOTE TO STATEMENT OF INVESTMENTS;
(a) Variable interest rates are subject to change periodically.
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC., GOVERNMENT SECURITIES SERIES
STATEMENT OF INVESTMENTS DECEMBER 31, 1995
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
U.S. TREASURY BILLS-37.1% PURCHASE AMOUNT VALUE
______ _______ _______
<S> <C> <C> <C>
2/8/96..................................................... 5.48% $ 15,000,000 $ 14,915,925
5/30/96.................................................... 5.54 40,000,000 39,108,333
6/27/96.................................................... 5.18 10,000,000 9,750,306
7/25/96.................................................... 5.72 35,000,000 33,913,922
8/22/96.................................................... 5.87 35,000,000 33,738,188
10/17/96................................................... 5.58 20,000,000 19,147,722
11/14/96................................................... 5.46 10,000,000 9,542,875
_______
TOTAL U.S. TREASURY BILLS
(cost $160,117,271)........................................ $160,117,271
=======
U.S. TREASURY NOTES-14.0%
4%, 1/31/96................................................ 4.94% $ 10,000,000 $ 9,990,767
7.875%, 2/15/96............................................ 4.97 30,000,000 30,096,321
7.375%, 5/15/96............................................ 5.41 20,000,000 20,136,585
_______
TOTAL U.S. TREASURY NOTES
(cost $60,223,673)......................................... $ 60,223,673
=======
REPURCHASE AGREEMENTS-46.4%
Goldman, Sachs & Co.
dated 12/29/95, due 1/2/96 in the amount of $36,023,320
(fully collateralized by $34,970,000 U.S. Treasury
Notes, 7.875%, due 6/30/96, value $36,794,997)............. 5.83% $ 36,000,000 $ 36,000,000
Lanston (Aubrey G.) & Co., Inc.
dated 12/29/95, due 1/2/96 in the amount of $55,036,056
(fully collateralized by $54,995,000 U.S. Treasury
Notes, 5.50% to 7.375%, due from 4/30/96 to
5/15/96, value $55,735,056)................................ 5.90 55,000,000 55,000,000
Lehman Government Securities, Inc.
dated 12/29/95, due 1/2/96 in the amount of $8,005,222
(fully collateralized by $7,960,000 U.S. Treasury
Notes, 7.75%, due 3/31/96, value $8,165,701)............... 5.87 8,000,000 8,000,000
Morgan Stanley & Co.
dated 12/29/95, due 1/2/96 in the amount of $40,026,089
(fully collateralized by $40,710,000 U.S. Treasury
Notes, 4.375%, due 11/15/96, value $40,652,262)............ 5.87 40,000,000 40,000,000
DREYFUS MONEY MARKET INSTRUMENTS, INC., GOVERNMENT SECURITIES SERIES
STATEMENT OF INVESTMENTS (CONTINUED) DECEMBER 31, 1995
ANNUALIZED
YIELD ON
DATE OF PRINCIPAL
REPURCHASE AGREEMENTS (CONTINUED) PURCHASE AMOUNT VALUE
______ _______ _______
SBC Capital Markets
dated 12/29/95, due 1/2/96 in the amount of $61,173,634
(fully collateralized by $54,835,000 U.S. Treasury
Notes, 7.25%, due 11/30/96,
and $6,545,000 U.S. Treasury Bills, due
11/14/96, value $62,377,934)............................... 5.83% $ 61,134,000 $ 61,134,000
______
TOTAL REPURCHASE AGREEMENTS
(cost $200,134,000)........................................ $200,134,000
=======
TOTAL INVESTMENTS
(cost $420,474,944).............................. 97.5% $420,474,944
==== =======
CASH AND RECEIVABLES (NET)........................... 2.5% $ 10,968,557
==== =======
NET ASSETS........................................... 100.0% $431,443,501
==== =======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995
MONEY GOVERNMENT
MARKET SECURITIES
SERIES SERIES
_______ _______
<S> <C> <C>
ASSETS:
Investments in securities, at value (including repurchase agreements of
$200,134,000 for the Government Securities Series)-Note 2(a,b)....... $143,735,842 $420,474,944
Cash................................................................... -- 8,251,425
Receivable for investment securities sold.............................. -- 9,756,133
Interest receivable.................................................... 1,047,893 1,347,942
Prepaid expenses....................................................... 33,088 67,906
_______ _______
144,816,823 439,898,350
_______ _______
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries........................ 66,220 243,408
Due to Custodian....................................................... 484,467 --
Payable for investment securities purchased............................ -- 8,000,000
Accrued expenses and other liabilities................................. 93,761 211,441
_______ _______
644,448 8,454,849
_______ _______
NET ASSETS................................................................. $144,172,375 $431,443,501
======= =======
REPRESENTED BY:
Paid-in capital........................................................ $144,170,689 $431,437,177
Accumulated undistributed net realized gain on investments............. 1,686 6,324
_______ _______
NET ASSETS, at value....................................................... $144,172,375 $431,443,501
======= =======
Shares of Common Stock outstanding:
Money Market Series
(5 billion shares of $.01 par value Common Stock authorized)......... 144,154,189
========
Government Securities Series
(10 billion shares of $.01 par value Common Stock authorized)........ 431,437,177
========
NET ASSET VALUE, offering and redemption price per share:
Money Market Series
($144,172,375 / 144,154,189 shares).................................. $1.00
===
Government Securities Series
($431,443,501 / 431,437,177 shares).................................. $1.00
===
See notes to financial statements.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
MONEY GOVERNMENT
MARKET SECURITIES
SERIES SERIES
______ _______
INVESTMENT INCOME:
INTEREST INCOME......................................................... $ 9,529,223 $27,042,295
_____ ______
EXPENSES-Note 2(c):
Management fee-Note 3(a).............................................. $ 772,469 $ 2,294,425
Shareholder servicing costs-Note 3(b)................................. 346,423 1,160,744
Custodian fees........................................................ 50,460 140,549
Registration fees..................................................... 29,139 32,683
Professional fees..................................................... 25,976 74,825
Directors' fees and expenses-Note 3(c)................................ 16,775 50,015
Prospectus and shareholders' reports.................................. 12,969 34,954
Miscellaneous......................................................... 42,219 9,935
______ ______
TOTAL EXPENSES.................................................... 1,296,430 3,798,130
______ ______
INVESTMENT INCOME-NET....................................................... 8,232,793 23,244,165
NET REALIZED GAIN ON INVESTMENTS-Note 2(b).................................. 88,254 6,504
______ ______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 8,321,047 $23,250,669
====== ======
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC.
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET SERIES GOVERNMENT SECURITIES SERIES
___________________ ___________________
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
___________________ ___________________
1994 1995 1994 1995
________ ________ ________ ________
<S> <C> <C> <C> <C>
OPERATIONS:
Investment income-net............. $ 6,015,399 $ 8,232,793 $ 15,841,682 $ 23,244,165
Net realized gain on investments.. 1,315 88,254 13,961 6,504
________ ________ ________ ________
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS... 6,016,714 8,321,047 15,855,643 23,250,669
________ ________ ________ ________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............. (6,015,399) (8,232,793) (15,841,682) (23,244,165)
________ ________ ________ ________
CAPITAL STOCK TRANSACTIONS
($1.00 per share):
Net proceeds from shares sold..... 363,712,784 324,551,779 1,082,467,060 1,238,511,882
Dividends reinvested.............. 4,481,890 6,132,624 12,253,115 16,345,565
Cost of shares redeemed........... (405,184,351) (357,148,554) (1,149,487,078) (1,289,375,994)
________ ________ ________ ________
(DECREASE) IN NET ASSETS FROM
CAPITAL STOCK TRANSACTIONS.. (36,989,677) (26,464,151) (54,766,903) (34,518,547)
________ ________ ________ ________
TOTAL (DECREASE) IN
NET ASSETS................ (36,988,362) (26,375,897) (54,752,942) (34,512,043)
NET ASSETS:
Beginning of year................. 207,536,634 170,548,272 520,708,486 465,955,544
________ ________ ________ ________
End of year....................... $ 170,548,272 $ 144,172,375 $ 465,955,544 $ 431,443,501
========= ========= ========= =========
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC., MONEY MARKET SERIES
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........................ .058 .035 .026 .034 .053
---- ---- ---- ---- ----
DISTRIBUTIONS:
Dividends from investment income-net......... (.058) (.035) (.026) (.034) (.053)
---- ---- ---- ---- ----
Net asset value, end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 5.95% 3.51% 2.64% 3.42% 5.46%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .72% .75% .83% .88% .84%
Ratio of net investment income to average
net assets................................. 5.83% 3.48% 2.62% 3.35% 5.33%
Net Assets, end of year (000's Omitted)...... $282,356 $242,326 $207,537 $170,548 $144,172
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
DREYFUS MONEY MARKET INSTRUMENTS, INC., GOVERNMENT SECURITIES SERIES
FINANCIAL HIGHLIGHTS (CONTINUED)
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........................ .055 .034 .025 .033 .051
____ ____ ____ ____ ____
DISTRIBUTIONS:
Dividends from investment income-net......... (.055) (.034) (.025) (.033) (.051)
____ ____ ____ ____ ____
Net asset value, end of year................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==== ==== ==== ==== ====
TOTAL INVESTMENT RETURN.......................... 5.65% 3.45% 2.48% 3.31% 5.18%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets...... .69% .72% .80% .88% .83%
Ratio of net investment income to average net assets 5.51% 3.39% 2.46% 3.24% 5.07%
Net Assets, end of year (000's Omitted)...... $706,544 $657,561 $520,708 $465,956 $431,444
</TABLE>
See notes to financial statements.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-GENERAL:
The Fund is registered under the Investment Company Act of 1940 ("Act")
as a diversified open-end management investment company and operates as a
series company issuing two classes of Common Stock: the Money Market Series
and the Government Securities Series. The Fund accounts separately for the
assets, liabilities and operations of each series. 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 the 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 for each series; 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.
NOTE 2-SIGNIFICANT ACCOUNTING POLICIES:
(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 custodians and, pursuant
to the terms of the repurchase agreements, 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) EXPENSES: Expenses directly attributable to each series are charged
to that series' operations; expenses which are applicable to both series are
allocated between them.
(D) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund, with respect
to both series, to declare dividends from investment income-net on each
business day; such dividends are paid monthly. Dividends from net realized
capital gain, with respect to both series, are normally declared and paid
annually, but each series may make distributions on a more frequent basis to
comply with the distribution requirements of the Internal Revenue Code.
However, to the extent that a net realized capital gain of either series can
be reduced by a capital loss carryover, if any, of that series, such gain
will not be distributed.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(E) FEDERAL INCOME TAXES: It is the policy of each series 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.
At December 31, 1995, the cost of investments of each series for Federal
income tax purposes was substantially the same as the cost for financial
reporting purposes (see the Statement of Investments).
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the Manager,
the management fee for each series is computed at the annual rate of .50 of
1% of the average daily value of the net assets of each series and is payable
monthly.
The Agreement provides for an expense reimbursement from the Manager
should the aggregate expenses of either series, exclusive of taxes, interest
on borrowings, brokerage commissions and extraordinary expenses, exceed 1% of
the average daily value of such series' 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 $9,751 and $20,566 for the Money
Market Series and the Government Securities Series, respectively, 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 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 Money Market Series and the Government Securities Series were charged an
aggregate of $130,046 and $656,225, respectively, 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 $4,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS MONEY MARKET INSTRUMENTS, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS MONEY MARKET INSTRUMENTS, INC.
We have audited the accompanying statement of assets and liabilities,
including the statement of investments, of Dreyfus Money Market Instruments,
Inc. (comprising, respectively, the Money Market Series and the Government
Securities Series), 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 each of the respective series constituting Dreyfus Money Market
Instruments, Inc. at December 31, 1995, the results of their operations for
the year then ended, the changes in their 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 1, 1996
DREYFUS MONEY MARKET INSTRUMENTS, INC., GOVERNMENT SECURITIES SERIES
IMPORTANT TAX INFORMATION (UNAUDITED)
For State individual income tax purposes, the Series hereby designates
54.36% of the ordinary income dividends paid during its fiscal year ended
December 31, 1995 as attributable to interest income from direct obligations
of the United States government. Such dividends are currently exempt from
taxation for individual income tax purposes in most states, including New
York, California and the District of Columbia.
[Dreyfus lion "d" logo]
DREYFUS MONEY MARKET
INSTRUMENTS, 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. 008/060AR9512
[Dreyfus logo]
Money Market
Instruments, Inc.
Annual Report
December 31, 1995
