[Dreyfus lion "d" logo] (reg.tm)
[Dreyfus logo] (reg.tm)
DREYFUS MUNICIPAL MONEY MARKET FUND, 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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 910AR985
Municipal Money
Market Fund, Inc.
Annual Report
May 31, 1998
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for the Dreyfus Municipal Money
Market Fund, Inc. for the 12-month period ended May 31, 1998. Your Fund produced
a yield of 3.08% and, after taking into account the effect of compounding, the
effective yield was 3.13%.*
MONEY MARKET OVERVIEW
Over the past several months, mixed economic signals have made it difficult to
discern the direction in which the economy is moving. Consumer spending
increased 0.5% in both April and May, fueled by both strong employment and
income growth. In addition, construction spending also rose 0.8% in April for
the fifth straight monthly increase. On the other hand, spring housing data was
mixed, with new home sales rising to record levels in April and existing-home
sales and new housing starts dropping off. The U.S. trade gap also continued to
widen, as manufacturers reported declines in exports to Asia, and tough
competition from cheaper Asian imports. With arguments to be made for both
continued growth and emerging weakness, it appears that Federal Reserve Board
monetary policy will remain on hold at least until something major happens to
sway Board members' opinions one way or another.
Inflation has remained benign throughout the period. Incoming data from April
did show a small 0.2% increase in the Consumer Price Index, although this modest
rise was the largest in six months. With no consensus as to the direction of the
economy, the Federal Reserve Board Open Market Committee left short-term
interest rates unchanged at its May meeting; however, the decision to do so may
not have been unanimous. Those most wary of inflation may win out in upcoming
meetings if the economy does not cool on its own. Interest rates on money market
securities fluctuated modestly during the period, but remained largely
unchanged. As U.S. Treasury borrowing needs continued to reduce the supply of
money market securities, demand remained steady.
MARKET ENVIRONMENT/PORTFOLIO OVERVIEW
While the Fed has remained quiet over the past six months, market technicals
(i.e. supply/demand fluctuations) have played a major role in our overall
investment strategy. The municipal money market has experienced some of these
changes in seasonal cash flows and note issuance since our last report. For
example, in late December, the short-term municipal market experienced a sharp,
albeit temporary, rise in short-term rates as a result of corporate seasonal
window dressing. Dealers priced securities at attractive levels in order to
minimize their inventories, which helped to boost your Fund's yield at year end.
The situation reversed in January as assets flowed back into the tax-exempt
money funds, thereby putting downward pressure on yields. During this period,
yields on tax-exempt money market funds fluctuated in response to these supply
and demand imbalances.
By mid-January, the market stabilized and normal trading patterns, for the
most part, returned and continued through March. In April, money funds were
tapped for income tax payments which, once again, put upward pressure on rates
as funds experienced redemptions. Supply conditions in late May reversed this
trend as municipal fund managers anticipated the effect of over $10 billion
notes leaving the market when they mature this month.
Unlike previous summer financing periods, this year's calendar of municipal
notes appropriate for purchase for your Fund was drastically reduced by a
combination of factors. Due to the strength of local and state economies, many
issuers reduced the amount of short-term borrowings. Additionally, many issuers
came to market with maturities outside of the 13-month maximum maturity
allowable for money funds, whereas these notes were eligible for purchase in
prior years. Other issues were converted to a synthetic structure that is not
currently permitted for purchase in your Fund. The overall result was a lower
yield for those note issues that were considered appropriate investments for
your Fund. We expect to choose selectively among these issues and those to
follow in the coming weeks to structure the portfolio in an attempt to maximize
current yield while maintaining our commitment to high quality tax-exempt
investments.
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 greatly appreciate your continued confidence in this Fund and in The
Dreyfus Corporation.
Very truly yours,
[Richard J. Moynihan signature logo]
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
June 18, 1998
New York, N.Y.
* Effective yield is based upon dividends declared daily and reinvested monthly
<TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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STATEMENT OF INVESTMENTS MAY 31, 1998
Principal
Tax Exempt Investments--100.0% Amount Value
- -------------------------------------------------------
_____________ _____________
<S> <C> <C>
California--3.5%
Fresno, RAN 4.25%, 6/30/98 $ 12,500,000 $ 12,504,302
Los Angeles County, TRAN 4.50%, Series A, 6/30/98 19,000,000 19,009,446
Delaware--8.7%
Delaware Economic Development Authority, Revenue, VRDN
(Hospital Billing and Collection Service Limited Project):
4%, Series A (Insured; MBIA and Liquidity Facility; Morgan Stanley) (a) 25,000,000 25,000,000
4%, Series B (Insured; MBIA and Liquidity Facility; Morgan Stanley) (a) 19,000,000 19,000,000
4%, Series C (Insured; MBIA and Liquidity Facility; Morgan Stanley) (a) 34,400,000 34,400,000
District of Columbia--2.2%
District of Columbia Housing Finance Agency, SFMR
4.15%, Series A, 7/1/98 (Liquidity Facility; Assured Management Corp.) 20,000,000 20,000,000
Florida--2.8%
Dade County, Water and Sewer Systems Revenue, VRDN
3.90% (Insured; FGIC and Liquidity Facility; Commerzbank) (a) 7,600,000 7,600,000
Sunshine State Governmental Finance Commission, Revenue, CP
3.55%, Series B, 7/15/98 (LOC; Bank of Nova Scotia) (a,b) 17,362,000 17,362,000
Georgia--3.6%
Athens-Clarke County Industrial Development Authority, IDR, VRDN
(Nakanishi Manufacturing Corp. Project) 4.325% (LOC; Sumitomo Bank) (a,b) 6,000,000 6,000,000
Burke County Development Authority, PCR, CP (Oglethorpe Power Corp. Project)
3.50%, Series A, 7/24/98 (Insured: AMBAC and LOC; Rabobank Nederland) (b) 10,000,000 10,000,000
Savannah Economic Development Authority, Revenue Exempt Facilities, VRDN
(Home Depot Project) 4%, Series A (Corp. Guaranty; Home Depot) (a) 17,000,000 17,000,000
Hawaii--1.0%
Honolulu City and County, Multi-Family Revenue, VRDN (Royal Kunia Gardens)
4.25%, Series B (LOC; Bank of Tokyo-Mitsubishi) (a,b) 9,225,000 9,225,000
Illinois--9.9%
City of Chicago, Mandatory Tender Notes:
3.55%, 10/29/98 (LOC; Morgan Guaranty Trust Co.) (b) 12,871,000 12,871,000
3.55%, 2/4/99 (LOC; Morgan Guaranty Trust Co.) (b) 10,000,000 10,000,000
Illinois Development Finance Authority, PCR, VRDN (Illinois Power Co.)
4.25%, Series C (LOC; Bank of Tokyo-Mitsubishi) (a,b) 10,400,000 10,400,000
Illinois Development Finance Authority, Revenue, VRDN (Provena Health)
4%, Series B (Insured; MBIA and LOC; Bank of America) (a,b) 40,000,000 40,000,000
Illinois Health Facilities Authority, Revenue, VRDN (Revolving Fund Pooled
Financing)
3.80%, Series C (LOC; First National Bank of Chicago) (a,b) 16,250,000 16,250,000
Indiana--2.0%
Hammond Local Public Improvement Bond Bank, Revenue, Advance Funding Program
Notes
4.30%, Series A-2, 1/7/99 (LOC; Bank One) (b) 17,810,000 17,861,669
</TABLE>
<TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1998
Principal
Tax Exempt Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
<S> <C> <C>
Idaho--1.1%
Idaho State, TAN 4.625%, 6/30/98 $ 10,000,000 $ 10,005,696
Kansas--4.3%
Butler County, Solid Waste Disposal Cogeneration Revenue, VRDN
(Texaco Refining and Marketing) 4.20%, Series B (LOC; Texaco Inc.) (a,b) 27,100,000 27,100,000
Topeka, MFHR, VRDN (Topeka Retirement Center Limited)
3.70% (LOC; Krediet Bank) (a,b) 6,970,000 6,970,000
Wichita, PCR, Refunding, VRDN (CIC Industries Inc. Project)
4.075% (LOC; The Bank of New York) (a,b) 5,000,000 5,000,000
Louisiana--1.9%
New Orleans Aviation Board, Revenue, VRDN (Passenger Facility Charge Project)
4.45% (LOC: Banque Paribas and Canadian Imperial Bank of Commerce) (a,b) 7,400,000 7,400,000
West Baton Rouge Parish Industrial District Number 3, Revenue, Refunding, VRDN
(Dow Chemical Co. Project) 4.15%, Series B, (LOC; Dow Chemical Co.) (a,b) 9,300,000 9,300,000
Maine--1.0%
Orrington, RRR, VRDN (Penobscott Energy Recovery Co. Project)
3.95%, Series B (LOC: Bank of Nova Scotia, Bankers Trust, Canadian Imperial
Bank
of Commerce, and Toronto Dominian Bank) (a,b) 9,355,000 9,355,000
Michigan--2.9%
Birmingham, EDR, VRDN (Brown Association Project)
4.075% (LOC; Bankers Trust Co.) (a,b) 1,945,000 1,945,000
Michigan Housing Development Authority, LOR, Refunding, VRDN
(Harbortown Limited Divide Project) 3.825% (LOC; Bankers Trust Co.) (a,b) 1,000,000 1,000,000
Michigan Municipal Bond Authority, Revenue
4.50%, Series B, 7/2/98 15,000,000 15,007,962
Michigan Strategic Fund, SWDR, VRDN
(Grayling Generating Project) 4% (LOC; Barclays Bank) (a,b) 8,000,000 8,000,000
Minnesota--1.1%
Cloquet, Industrial Facilities Revenue, VRDN (Potlatch Corp. Project)
3.90%, Series C (LOC; Credit Suisse) (a,b) 5,300,000 5,300,000
St. Paul Housing and Redevelopment Authority, Health Care Systems Revenue,
Refunding
VRDN (Child Health Care)
4.05%, Series B (Insured; FSA and LOC: Norwest Bank of Minnesota) (a,b) 4,800,000 4,800,000
Montana--1.5%
Forsyth, PCR, Refunding, VRDN (Pacific Corp. Project)
4% (LOC; Rabobank Nederland) (a,b) 13,400,000 13,400,000
Nebraska--1.4%
Nebhelp Incorporated, Revenue, Mutiple Mode Student Loan, VRDN
3.70%, Series A (Insured; MBIA and LOC; Student Loan Marketing Association) (a,b) 12,995,000 12,995,000
</TABLE>
<TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1998
Principal
Tax Exempt Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
<S> <C> <C>
Nevada--2.8%
Las Vegas Valley Water District, CP 3.75%, Series A, 7/29/98
(LOC: United Bank of Switzerland and Westdeutsche Landesbank) (a,b) $ 25,000,000 $ 25,000,000
New Mexico--.9%
New Mexico Mortgage Finance Authority, Single Family Mortgage Program
3.90%, Issue 2, 10/15/98 (Insured; FGIC) 8,000,000 8,000,000
New York--9.0%
New York City:
RAN 4.50%, Series A, 6/30/98 (LOC: Bayerische Landesbank, Landesbank Hessen,
National Westminster Bank and Societe Generale) (b) 7,000,000 7,004,183
VRDN 4.10%, Series B (Insured; FGIC) (a) 6,800,000 6,800,000
New York State Energy, Research and Development Authority, PCR (LILCO Project)
3.58%, Series A, 3/1/99 (LOC; Deutsche Bank) (b) 13,530,000 13,530,000
New York State Housing Finance Agency, Service Contract Obligation, Revenue,
VRDN
3.85%, Series A (LOC; Commerzbank) (a,b) 4,000,000 4,000,000
New York State Local Government Assistance Corporation, VRDN
3.85%, Series A (LOC: Credit Suisse, and Union Bank of Switzerland) (a,b) 35,700,000 35,700,000
Suffolk County, TAN 4.25%, Series A-1, 8/13/98 (LOC: Canadian Imperial Bank of
Commerce,
National Westminster Bank and Westdeutsche Landesbank) (b) 14,000,000 14,016,445
North Carolina--.5%
Craven County Industrial Facilities and Pollution Control Finance Authority,
Resource
VRDN (Craven Wood Energy) 4.20%, Series C (LOC; ABN-Amro Bank) (a,b) 4,100,000 4,100,000
Ohio--4.3%
Cincinnati City School District, BAN 4.32%, 9/17/98 10,000,000 10,010,503
Columbus Electric System, Revenue, VRDN 3.50% (LOC; Union Bank of Switzerland) (a,b) 1,300,000 1,300,000
Cuyahoga County, HR, VRDN (Cleveland Clinic Foundation)
3.75%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b) 3,200,000 3,200,000
Greene County, Certificate of Indebtness, GO Notes 3.75%, 5/6/99 8,000,000 8,001,416
Hamilton County, Hospital Facilities Revenue, VRDN (Bethesda Hospital Inc.)
3.75% (LOC; Rabobank Nederland) (a,b) 2,000,000 2,000,000
Ohio Housing Finance Agency, Mortgage Revenue
3.80%, Series A-3, 3/1/99 (LOC; Trinity Funding Corp.) (b) 11,880,000 11,880,000
Piqua, IDR, VRDN (Berwick Steel Co. Project) 3.95% (LOC; Sanwa Bank ) (a,b) 1,000,000 1,000,000
Sharonville, IDR, VRDN (Edgecomb Metals Co. Project)
3.70% (LOC; Banque Nationale de Paris) (a,b) 1,150,000 1,150,000
Oregon--1.1%
Klamath Falls, Electric Revenue (Salt Caves Hydroelectric)
3.80%, Series C, 5/3/99 (Escrowed in; U.S. Treasury Bills) 10,000,000 10,000,000
</TABLE>
<TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1998
Principal
Tax Exempt Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
<S> <C> <C>
Pennsylvania--4.0%
Columbia County Industrial Development Authority, IDR, VRDN (Kleerdex Co.
Project)
4.50% (LOC: Bank of Tokyo-Mitsubishi and Sanwa Bank) (a,b) $ 4,800,000 $ 4,800,000
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue, VRDN:
4%, Series A (LOC; Student Loan Marketing Association) (a,b) 12,100,000 12,100,000
4%, Series C (LOC; Student Loan Marketing Association) (a,b) 8,900,000 8,900,000
Philadelphia, TRAN 4.50%, Series A, 6/30/98 10,000,000 10,003,819
South Carolina--1.9%
South Carolina Jobs Economic Development Authority, EDR, VRDN
(Wellman Inc., Project) 4.15% (LOC; Wachovia Bank and Trust Co.) (a,b) 10,010,000 10,010,000
York County, Industrial Revenue, VRDN (Textron Project)
5.50% (LOC; Bankers Trust) (a,b) 7,500,000 7,500,000
Tennessee--2.9%
Oak Ridge, IDB, Solid Waste Revenue, VRDN (M4 Environmental)
4% (LOC; Sun Trust Bank) (a,b) 10,000,000 10,000,000
Sevier County Public Building Authority, Local Government Public Improvement,
VRDN:
3.75%, Series A-1 (Insured; AMBAC and SBPA; Krediet Bank) (a) 7,020,000 7,020,000
3.75%, Series B-1 (Insured; AMBAC and SBPA; Krediet Bank) (a) 4,600,000 4,600,000
3.75%, Series B-2 (Insured; AMBAC and SBPA; Krediet Bank) (a) 4,600,000 4,600,000
Texas--16.2%
Brazos River Authority, PCR, VRDN (Utility Electric Co.):
4.15%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b) 20,000,000 20,000,000
Refunding 3.95%, Series A (Insured; MBIA and LOC; The Bank of New York) (a,b) 3,000,000 3,000,000
Brazos River Harbor Naval District, VRDN (Dow Chemical Co. Project):
Brazoria County Revenue 4.20% (LOC; Dow Chemical Co.) (a,b) 19,100,000 19,100,000
Harbor Revenue 4.20% (LOC; Dow Chemical Co.) (a,b) 10,000,000 10,000,000
Greater East Texas Higher Education Authority Inc., Student Loan Revenue
3.95%, Series B, 9/1/98 (LOC; Student Loan Marketing Association) (b) 8,000,000 8,000,000
Greater Texas Student Loan Corporation, Student Loan Revenue, Refunding
3.60%, Series A, 3/1/99 (LOC; Student Loan Marketing Association) (b) 8,000,000 8,000,000
Gulf Coast Waste Disposal Authority, Environmental Facilities Revenue, VRDN
(Bayer Corp. Project) 4.20% (LOC; Bayer Corp.) (a,b) 23,000,000 23,000,000
Pan-Handle Plains Higher Education Authority Inc., Student Loan Revenue, VRDN
4%, Series A (LOC; Student Loan Marketing Association) (a,b) 13,000,000 13,000,000
State of Texas, TRAN 4.75%, 8/31/98 32,100,000 32,254,481
Texas Public Finance Authority, Revenue, CP
3.55%, Series A, 7/21/98 (LOC: Toronto Dominion Bank and Union Bank of Switzerland) (b) 10,300,000 10,300,000
Utah--1.0%
Intermountain Power Agency, Power Supply Revenue, CP
3.55%, 7/16/98 (Liquidity Facility: Bank of America and Bank of Nova Scotia) 9,000,000 9,000,000
</TABLE>
<TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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STATEMENT OF INVESTMENTS (CONTINUED) MAY 31, 1998
Principal
Tax Exempt Investments (continued) Amount Value
- -------------------------------------------------------
_____________ _____________
<S> <C> <C>
Virginia--5.2%
Charles City and County Industrial Development Authority, Exempt Facilities
Revenue
VRDN (Chambers Project) 3.90% (LOC; Morgan Guaranty Trust Co.) (a,b) $ 7,400,000 $ 7,400,000
Henrico County Industrial Development Authority, Health Facility Revenue, VRDN
(Hermitage Project) 4.10% (LOC; Nations Bank of Virginia) (a,b) 14,930,000 14,930,000
Peninsula Ports Authority, Revenue, Refunding, VRDN (Zelger Coal)
4.15% (LOC; Bank of America) (a,b) 14,950,000 14,950,000
Richmond Industrial Development Authority, Revenue, VRDN (Cogentrix of Richmond
Project)
4.50%, Series A (LOC; Banque Paribas) (a,b) 10,000,000 10,000,000
Wisconsin--1.3%
Wisconsin Health and Educational Facilities Authority, Revenue, CP (Alexian
Village)
3.70%, Series A, 8/20/98 (Insured; MBIA and LOC; First Chicago Corp.) (b) 11,440,000 11,440,000
_____________
TOTAL INVESTMENTS (cost $902,663,993) $902,662,922
=============
</TABLE>
<TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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Summary of Abbreviations
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MBIA Municipal Bond Investors Assurance
BAN Bond Anticipation Notes Insurance Corporation
CP Commercial Paper MFHR Multi-Family Housing Revenue
EDR Economic Development Revenue PCR Pollution Control Revenue
FGIC Financial Guaranty Insurance Company RAN Revenue Anticipation Notes
FSA Financial Security Assurance RRR Resources Recovery Revenue
GO General Obligation SBPA Standby Bond Purchase Agreement
HR Hospital Revenue SFMR Single Family Mortgage Revenue
IDB Industrial Development Board SWDR Solid Waste Disposal Revenue
IDR Industrial Development Revenue TAN Tax Anticipation Notes
LOC Letter of Credit TRAN Tax Revenue Anticipation Notes
LOR Limited Obligation Revenue VRDN Variable Rate Demand Notes
Summary of Combined Ratings (Unaudited)
- -----------------------------------------------------------------------------
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
_______ ________ _________________ ___________________
F1+/F1 VMIG1/MIG1, P1 (d) SP1+/SP1, A1+/A1 (d) 95.4%
AAA/AAA (e) Aaa/A/ (e) AAA/AA (e) 1.2
Not Rated (f) Not Rated (f) Not Rated (f) 3.4
____
100.0%
=======
</TABLE>
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a)Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(b)Secured by letters of credit. At May 31, 1998, 67.9% of the Fund's net
assets are backed by letters of credit issued by domestic banks, foreign banks,
corporations, and government agencies.
(c)Fitch currently provides creditworthiness information for a limited number
of investments.
(d)P1 and A1 are the highest ratings assigned tax exempt commercial paper by
Moody's and Standard & Poor's, respectively.
(e)Notes which are not F, MIG or SP rated are represented by bond ratings of
the issuers.
(f)Securities which, while not rated by Fitch, Moody's or Standard & Poor's
have been determined by the Manager to be of comparable quality to those rated
securities in which the Fund may invest.
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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STATEMENT OF ASSETS AND LIABILITIES MAY 31, 1998
Cost Value
_____________ _____________
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $902,663,993 $902,662,922
Interest receivable 9,176,369
Prepaid expenses and other assets 68,715
_____________
911,908,006
_____________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 458,199
Cash overdraft due to Custodian 7,586,464
Accrued expenses and other liabilities 146,109
_____________
8,190,772
_____________
NET ASSETS $903,717,234
=============
REPRESENTED BY: Paid-in capital $903,741,097
Accumulated undistributed investment income--net 133,918
Accumulated net realized gain (loss) on investments (156,710)
Accumulated gross unrealized (depreciation) on investments (1,071)
_____________
NET ASSETS $903,717,234
=============
SHARES OUTSTANDING
(5 billion shares of $.01 par value Common Stock authorized) 905,516,620
NET ASSET VALUE, offering and redemption price per share $1.00
=====
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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STATEMENT OF OPERATIONS YEAR ENDED MAY 31, 1998
INVESTMENT INCOME
<S> <C> <C> <C>
INCOME Interest Income $37,351,905
EXPENSES: Management fee--Note 2(a) $ 5,001,054
Shareholder servicing costs--Note 2(b) 1,184,145
Registration fees 126,065
Custodian fees 81,483
Professional fees 62,207
Directors' fees and expenses--Note 2(c) 59,846
Prospectus and shareholders' reports 28,715
Miscellaneous 23,117
____________
Total Expenses 6,566,632
____________
INVESTMENT INCOME--NET 30,785,273
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) (34,746)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $30,750,527
============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
<TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
May 31, 1998 May 31, 1997
_______________ _______________
<S> <C> <C>
OPERATIONS:
Investment income--net $ 30,785,273 $ 29,166,497
Net realized gain (loss) on investments (34,746) (2,582)
Net unrealized appreciation (depreciation) on investments -- (6,289)
_______________ _______________
Net Increase (Decrease) in Net Assets Resulting from Operations 30,750,527 29,157,626
_______________ _______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net (30,785,273) (29,166,510)
Net realized gain on investments -- (22,722)
_______________ _______________
Total Dividends (30,785,273) (29,189,232)
_______________ _______________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold 2,925,580,744 3,175,303,462
Dividends reinvested 17,843,487 18,593,500
Cost of shares redeemed (3,064,320,922) (3,196,745,808)
Net assets received in connection with reorganization (Dreyfus Michigan Municipal
Money Market Fund)--Note 1 -- 42,809,635
Net assets received in connection with reorganization (Dreyfus Ohio Municipal
Money Market Fund)--Note 1 -- 34,121,878
_______________ _______________
Increase (Decrease) in Net Assets from Capital Stock Transactions (120,896,691) 74,082,667
_______________ _______________
Total Increase (Decrease) in Net Assets (120,931,437) 74,051,061
NET ASSETS:
Beginning of Period 1,024,648,671 950,597,610
_______________ _______________
End of Period $ 903,717,234 $1,024,648,671
_______________ _______________
Undistributed investment income--net $ 133,918 $ 133,918
_______________ _______________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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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 period indicated. This information has been
derived from the Fund's financial statements.
Year Ended May 31,
_____________________________________________________________
PER SHARE DATA: 1998 1997 1996 1995 1994
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______
Investment Operations:
Investment income--net .031 .029 .031 .029 .020
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net (.031) (.029) (.031) (.029) (.020)
______ ______ ______ ______ ______
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN 3.13% 2.98% 3.16% 2.98% 2.00%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .66% .65% .64% .62% .62%
Ratio of net investment income
to average net assets 3.08% 2.94% 3.11% 2.91% 1.98%
Net Assets, end of period (000's Omitted) $903,717 $1,024,649 $950,598 $933,311 $1,117,002
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Municipal Money Market Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a diversified open-end management
investment company. The Fund' s investment objective is to maximize current
income exempt from Federal income tax to the extent consistent with the
preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager is
a direct subsidiary of Mellon Bank, N.A. Premier Mutual Fund Services, Inc. is
the distributor of the Fund's shares, which are sold to the public without a
sales charge.
On August 26, 1996, the Fund acquired all the net assets of Dreyfus Michigan
Municipal Money market Fund ("DMMMMF") pursuant to a plan of reorganization. The
acquisition was accomplished by a tax-free exchange of shares, at which time
42,858,162 shares of DMMMMF, valued at $1.00 per share and representing net
assets of $42,809,635 were exchanged for 42,858,162 shares of the Fund. The
aggregate net assets of the Fund and DMMMMF immediately before the acquisition
were $956,664,386 and $42,809,635 respectively.
On August 2, 1996, the Fund acquired all the net assets of Dreyfus Ohio
Municipal Money Market Fund ("DOMMMF") pursuant to a plan of reorganization. The
acquisition was accomplished by a tax-free exchange of shares, at which time
34,170,011 shares of DOMMMF, valued at $1.00 per share and representing net
assets of $34,121,878 were exchanged for 34,170,011 shares of the Fund. The
aggregate net assets of the Fund and DOMMMF immediately before the acquisition
were $892,355,560 and $34,121,878 respectively.
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 per share of
$1.00.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities 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. Interest income, adjusted for amortization of
premiums and original issue discounts on investments, is earned from settlement
date and recognized on the accrual basis. Realized gain and loss from securities
transactions are recorded on the identified cost basis. Cost of investments
represent amortized cost. Under the terms of the custodian agreement, the Fund
received net earnings credits of $33,374 during the period ended May 31, 1998
based on available cash balances left on deposit. Income earned under this
arrangement is included in interest income.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid monthly.
Dividends from net realized capital gain, if any, 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.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to qualify
as a regulated investment company, which can distribute tax exempt dividends, by
complying with the applicable provisions of the Internal Revenue Code, and to
make distributions of income and net realized capital gain sufficient to relieve
it from substantially all Federal income and excise taxes.
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
The Fund has an unused capital loss carryover of approximately $120,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to May 31, 1998. The carryover
does not include net realized securities losses from November 1, 1997 through
May 31, 1998 which are treated, for Federal income tax purposes, as arising in
fiscal 1999. If not applied, $1,000 of the carryover expires in fiscal 2000,
$4,000 expires in fiscal 2001, $49,000 expires in fiscal 2002, $36,000 expires
in fiscal 2003, $7,000 expires in fiscal 2004, $2,000 expires in fiscal 2005 and
$21,000 expires in fiscal 2006.
At May 31, 1998, 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 with the Manager, the management fee is
computed at the annual rate of
. 50 of 1% of the value of the Fund's average daily net assets and is payable
monthly.
(B) Under the 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 period ended May
31, 1998, the Fund was charged $805,959 pursuant to the Shareholder Services
Plan.
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. During the period
ended May 31, 1998, the Fund was charged $287,495 pursuant to the transfer
agency agreement.
(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 MUNICIPAL MONEY MARKET FUND, INC.
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REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS MUNICIPAL MONEY MARKET FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Municipal Money Market Fund, Inc., including the statement of
investments, as of May 31, 1998, 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 and financial highlights. Our procedures included confirmation of
securities owned as of May 31, 1998 by correspondence with the custodian. 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 Municipal Money Market Fund, Inc. at May 31, 1998, 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 & Young, LLP signature logo]
New York, New York
July 6, 1998
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby designates all the
dividends paid from investment income-net during the fiscal year ended May 31,
1998 as "exempt-interest dividends" (not generally subject to regular Federal
income tax).
