<PAGE>
Dreyfus
Municipal
Money Market
Fund, Inc.
Semi-Annual
Report
November 30, 1997
<PAGE>
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 six-month period ended November 30, 1997. Your Fund
produced an annualized yield of 3.14% and after taking into account the effect
of compounding, the annualized effective yield was 3.19%.*
Money Market Overview
The U.S. economy continued to grow solidly during recent months, although
there were signs of a slowdown ahead as the period drew to a close. Growth in
the Gross Domestic Product (GDP) remained strong during the second quarter of
1997, at 3.3%, and fall data seemed to indicate more of the same for the third
quarter. Construction of new homes and apartments unexpectedly rose in October,
while retailing results improved and product orders stayed strong. Job gains
were also healthy, and the unemployment rate dipped to a 24-year low. Weakness
began to emerge, however, with a sharp widening in the September trade gap,
probably representing the first sign that Asia's financial turmoil is slowing
U.S. growth. Recent orders for big-ticket durables also suggested some economic
deceleration, as did a drop in November's National Association of Purchasing
Manager's factory index, which has declined three of the last four months.
Although strong economic growth and tightening employment conditions have
kept market participants on edge about the potential for rising inflation, the
actual inflation picture has improved. The highly reliable, broadly based core
GDP chain weight price index was up only 1.6% over the past four quarters, and
has been demonstrating a clear decelerating trend. In fact, the Federal Reserve
Board's Open Market Committee left the Federal Funds target rate unchanged at
its November meeting, and has not raised it since last March. Short-term rates
have responded accordingly and remained in a trading range throughout most of
the period.
Market Environment/Portfolio Focus
While the Federal Reserve Board remained quiet over the summer months, market
technicals (i.e. supply/demand) played a major role in the short-term municipal
market. Supply of one-year notes dissipated as many securities matured in late
June and July. This increase in investable assets marketwide placed temporary
downward pressure on yields. In the weeks to follow, issuers returned to the
market with their summer financings alleviating the supply and demand imbalance.
During this period, your Fund selectively purchased high-quality municipal notes
which allowed your Fund to diversify and extend out on the one-year yield curve.
Since that time, the market for one-year paper has remained in a trading range.
With the relatively flat yield curve environment that existed, we believed that
we did not need to extend your Fund's average maturity significantly in order to
capture and lock in relatively attractive rates.
As year-end approaches, we expect to see a temporary rise in short-term rates
as a result of corporate "window dressing." In addition, dealers generally price
securities at attractive levels in order to keep their year-end inventory to a
minimum. This situation tends to reverse itself in early January as investors
return to the marketplace and the demand for short-term municipals increases. As
a result, over year-end we expect to see some volatility in short-term yields
but then the market should stabilize. During this period, we will attempt to
minimize the volatility in rates for your Fund by purchasing commercial paper
or short notes which mature beyond January. As always, new investments will
continue to meet the high credit quality standards which we require and to
provide a significant level of liquidity, commensurate with the needs of your
Fund.
<PAGE>
Included in this report is a series of detailed statements about your Fund's
holdings and its financial condition. We hope you find them informative. Please
know that we greatly appreciate your continued confidence in the Fund and in
The Dreyfus Corporation.
Very truly yours,
/s/ Richard J. Moynihan
Richard J. Moynihan
Director, Municipal Portfolio Management
The Dreyfus Corporation
December 18, 1997
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Tax Exempt Investments--100.0% Amount Value
- ------------------------------------------------------------------------------- ---------- ---------
<S> <C> <C>
Alaska--1.5%
Valdez, Marine Terminal Revenue, Refunding, CP (Arco Transportation Project)
3.90%, Series A, 3/10/98 (Liquidity Facility; Atlantic Richfield Co.)....... $ 14,100,000 $ 14,100,000
California--6.9%
Fresno, RAN 4.25%, 6/30/98..................................................... 12,500,000 12,531,302
Los Angeles County, TRAN 4.50%, Series A, 6/30/98.............................. 19,000,000 19,068,726
Riverside County, TRAN 4.50%, 6/30/98.......................................... 11,000,000 11,033,604
State of California, RAN 4.50%, 6/30/98........................................ 20,000,000 20,073,922
Delaware--8.5%
Delaware Economic Development Authority, Revenue, VRDN
(Hospital Billing and Collection Service Limited Project):
3.85%, Series A (Insured; MBIA and Liquidity Facility; Morgan Stanley) (a) 25,000,000 25,000,000
3.85%, Series B (Insured; MBIA and Liquidity Facility; Morgan Stanley) (a) 19,000,000 19,000,000
3.85%, Series C (Insured; MBIA and Liquidity Facility; Morgan Stanley) (a) 34,400,000 34,400,000
District of Columbia--4.3%
District of Columbia, VRDN:
General Fund Recovery 4.05%, Series B-1 (LOC; Societe Generale) (a,b)....... 7,000,000 7,000,000
Refunding 4.10%, Series A-1 (LOC; National Westminster Bank) (a,b).......... 12,800,000 12,800,000
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--3.2%
Dade County, Water and Sewer Systems Revenue, VRDN
3.80% (Insured; FGIC and Liquidity Facility; Commerzbank) (a)............... 19,600,000 19,600,000
Pasco County Industrial Development Authority, Revenue, VRDN
(Woodhaven Partners Limited Project) 3.85% (LOC; Krediet Bank) (a,b)........ 9,500,000 9,500,000
Georgia--3.6%
Athens-Clarke County Industrial Development Authority, IDR, VRDN
(Nakanishi Manufacturing Corp. Project) 4.225% (LOC; Sumitomo Bank) (a,b)... 6,000,000 6,000,000
Burke County Development Authority, PCR, Refunding, VRDN
(Georgia Power Co. Plant Vogtle Project) 3.85% (LOC; Georgia Power Co.) (a,b) 10,000,000 10,000,000
Savannah Economic Development Authority, Revenue Exempt Facilities, VRDN
(Home Depot Project) 4.05%, 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)
4.30%, Series B (LOC; Bank of Tokyo-Mitsubishi) (a,b)....................... 9,450,000 9,450,000
Illinois--6.5%
City of Chicago, Mandatory Tender Notes
3.65%, 2/5/98 (LOC; Morgan Guaranty Trust Co.) (b).......................... 11,371,000 11,371,000
Illinois Development Finance Authority, PCR, VRDN (Illinois Power Co.)
4.20%, Series C (LOC; Bank of Tokyo-Mitsubishi Bank) (a,b).................. 10,400,000 10,400,000
Illinois Health Facilities Authority, Revenue, VRDN:
(Northwestern Memorial Hospital)
3.85% (LOC; Northern Trust) (a,b)........................................ 6,500,000 6,500,000
(Resurrection Health Care Systems)
3.85% (LOC: Comerica Bank, First Chicago and La Salle National Bank) (a,b) 15,400,000 15,400,000
(Revolving Fund Pooled Financing)
3.85%, Series C (LOC; First National Bank of Chicago) (a,b).............. 16,250,000 16,250,000
</TABLE>
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ----------- -------
<S> <C> <C>
Indiana--3.5%
Hammond Local Public Improvement Bond Bank, Revenue, Advance Funding Program Notes
4.20%, Series A-2, 1/8/98 (LOC; Bank One) (b)............................... $ 17,600,000 $ 17,608,819
Indiana Bond Bank, Advance Funding Notes
4.25%, Series A-2, 1/21/98 (LOC: Indiana Bond Bank and Norwest Bank
of Minnesota) (b)........................................................... 15,000,000 15,011,137
Idaho--1.1%
Idaho State, TAN 4.625%, 6/30/98............................................... 10,000,000 10,041,446
Kansas--4.2%
Butler County, Solid Waste Disposal Cogeneration Revenue, VRDN
(Texaco Refining and Marketing) 4.15 Series B (LOC; Texaco Inc.) (a,b)...... 27,100,000 27,100,000
Topeka, MFHR, VRDN (Topeka Retirement Center Limited)
3.85% (LOC; Krediet Bank) (a,b)............................................. 6,970,000 6,970,000
Wichita, PCR, Refunding, VRDN (CIC Industries Inc. Project)
4.325% (LOC; The Bank of New York) (a,b).................................... 5,000,000 5,000,000
Louisiana--2.6%
Ascension-Parish, Revenue, VRDN (BASF Corp. Project) 4% (LOC; BASF Corp.) (a,b) 4,500,000 4,500,000
New Orleans Aviation Board, Revenue, VRDN (Passenger Facility Charge Project)
4.30% (LOC: Banque Paribas and Canadian Imperial Bank of Commerce) (a,b).... 7,400,000 7,400,000
Saint Charles Parish, PCR, VRDN (Shell Oil Co. - Norco Project)
4.05% (LOC; Shell Oil Co.) (a,b)............................................ 12,000,000 12,000,000
Maine--1.1%
Orrington, RRR, VRDN (Penobscott Energy Recovery Co. Project)
4.10%, Series B (LOC: Bank of Nova Scotia, Bankers Trust, Canadian Imperial Bank
of Commerce, Long-Term Credit Bank of Japan and Toronto Dominian Bank) (a,b) 10,100,000 10,100,000
Michigan--5.9%
Birmingham, EDR, VRDN (Brown Association Project)
4.325% (LOC; Bankers Trust Co.) (a,b)....................................... 1,975,000 1,975,000
Chelsea Economic Development Corporation, LOR, VRDN
(Silver Maples of Chelsea) 3.85% (LOC; Comerica Bank) (a,b)................. 1,500,000 1,500,000
Detroit City School District 4.441%, 5/1/98.................................... 10,000,000 10,024,041
Kalamazoo County Economic Development Corporation, Industrial and EDR, VRDN
(WBC Property Project) 4% (Corp., Guaranty; Old Kent Bank and Trust Co.) (a) 3,000,000 3,000,000
Kent Hospital Finance Authority, Hospital Facility Revenue, VRDN (Butterworth Hospital)
3.80%, Series A (LOC; Rabobank Nederland) (a,b)............................. 1,300,000 1,300,000
Michigan Housing Development Authority, LOR, Refunding, VRDN
(Harbortown Limited Divide Project) 4.075% (LOC; Bankers Trust Co.) (a,b)... 1,000,000 1,000,000
Michigan Municipal Bond Authority, Revenue
4.50%, Series B, 7/2/98 (LOC; Bankers Trust Co.) (b)........................ 15,000,000 15,054,709
Michigan Strategic Fund, VRDN:
LOR:
(Angelo's Crushed Concrete, Inc.) 4.15%, Series C-1 (LOC; Comerica Bank)(a,b) 1,725,000 1,725,000
(Fritz and Caroline Huebner Project) 4.15%, Series B-2 (LOC; Comerica Bank)(a,b) 750,000 750,000
(K & M Machine Fabric) 4.15%, Series A-4 (LOC; Comerica Bank) (a,b)...... 500,000 500,000
(Norbert Industrial Inc., Project) 3.85% (LOC; Michigan National Bank) (a,b) 2,000,000 2,000,000
(Thorn Apple Valley Inc., Project) 4.05% (LOC; Old Kent Bank and Trust Co.)(a,b) 2,600,000 2,600,000
Refunding
(Louisiana Pacific Corp.) 3.95% (LOC; Wachovia Bank of North Carolina)(a,b) 2,600,000 2,600,000
</TABLE>
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------ ---------
<S> <C> <C>
Michigan (continued)
Michigan Strategic Fund, VRDN:
SWDR (Grayling Generating Project) 4% (LOC; Barclays Bank) (a,b)............ $ 8,000,000 $ 8,000,000
Sterling Heights Economic Development Corporation, LOR, Refunding, VRDN
(Sterling Shopping Center) 3.90% (LOC; National Bank of Detroit) (a,b)...... 2,255,000 2,255,000
Missouri--.8%
Independence Industrial Development Authority, IDR, Refunding, VRDN
(Groves and Graceland) 3.85%, Series A (LOC; Credit Locale de France) (a,b). 7,500,000 7,500,000
Nebraska--1.4%
Nebraska Higher Education Loan Program Inc., Revenue, VRDN (Multiple Mode-Student Loan)
3.85%, Series A (Insured; MBIA and LOC; Student Loan Marketing Association) (a,b) 12,995,000 12,995,000
Nevada--2.0%
Clark County, IDR, VRDN (Nevada Cogeneration Association)
4.10% (LOC; Swiss Bank Corp.) (a,b)......................................... 10,700,000 10,700,000
Washoe County, Water Facilities Revenue, VRDN (Sierra Pacific Power Co. Project)
4.10% (LOC; Union Bank of Switzerland) (a,b)................................ 8,200,000 8,200,000
New Jersey--1.1%
New Jersey Sports and Exposition Authority, VRDN
3.70%, Series C (Insured; MBIA and LOC; Barclay de Zoette) (a,b)............ 10,000,000 10,000,000
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--8.0%
New York City:
Refunding, CP 3.70%, Series H, 12/11/97
(Insured; MBIA and Liquidity Facility; Landesbank Hessen)................ 25,000,000 25,000,000
VRDN 3.85%, Series B (Insured MBIA and LOC; National Westminster Bank) (a,b) 4,000,000 4,000,000
New York State Energy Research and Development Authority, PCR (LILCO Project)
3.60%, Series A, 3/1/98 (LOC; Deutsche Bank) (b)............................ 13,530,000 13,530,000
New York State Housing Finance Agency, HR, VRDN (Normandie Court II)
3.90%, Series A (LOC; Fleet Bank) (a,b)..................................... 10,600,000 10,600,000
New York State Local Government Assistance Corporation, VRDN
3.80%, Series A (LOC: Credit Suisse, Swiss Bank Corp. and
Union Bank of Switzerland) (a,b)............................................ 21,000,000 21,000,000
North Carolina--.4%
Craven County Industrial Facilities and Pollution Control Finance Authority, Resource
VRDN (Craven Wood Energy) 4.05%, Series C (LOC; ABN-Amro Bank) (a,b)........ 4,100,000 4,100,000
Ohio--3.2%
Cincinnati City School District, BAN 4.32%, 9/17/98............................ 10,000,000 10,028,203
Columbus Electric System, Revenue, VRDN 3.70% (LOC; Union Bank of Switzerland)(a,b) 1,300,000 1,300,000
Cuyahoga County, HR, VRDN (Cleveland Clinic Foundation)
3.80%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b)...................... 3,200,000 3,200,000
Hamilton County, Hospital Facilities Revenue, VRDN (Bethesda Hospital Inc.)
3.80% (LOC; Rabobank Nederland) (a,b)....................................... 2,000,000 2,000,000
</TABLE>
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ---------- -------
<S> <C> <C>
Ohio (continued)
Ohio Housing Finance Agency, Residential Mortgage Revenue
3.65%, Series A-2, 3/2/98 (LOC; American Insurance Group, Inc.) (b)......... $ 8,000,000 $ 8,000,000
Ohio State University, General Receipt, VRDN 3.90%, Series B (a)............... 1,750,000 1,750,000
Piqua, IDR, VRDN (Berwick Steel Co. Project) 4.10% (LOC; Sanwa Bank )(a,b)..... 1,000,000 1,000,000
Sharonville, IDR, VRDN (Edgecomb Metals Co. Project)
3.85% (LOC; Banque Nationale de Paris) (a,b)................................ 1,150,000 1,150,000
Toledo-Lucas County Port Authority, Development Revenue, VRDN
(Frostbite Brands Inc., Project) 4.05% (LOC; Old Kent Bank and Trust Co.)(a,b) 1,020,000 1,020,000
Pennsylvania--3.9%
Columbia County Industrial Development Authority, IDR, VRDN (Kleerdex Co. Project)
4.35% (LOC; Bank of Tokyo-Mitsubishi) (a,b)................................. 4,800,000 4,800,000
Pennsylvania Higher Education Assistance Agency, Student Loan Revenue, VRDN:
4.05%, Series A (LOC; Student Loan Marketing Association) (a,b)............. 12,100,000 12,100,000
4.05%, 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 10,027,785
South Carolina--1.9%
South Carolina Jobs Economic Development Authority, VRDN
(Wellman Inc., Project) 3.95% (LOC; Wachovia Bank of Georgia) (a,b)......... 10,010,000 10,010,000
York County, Industrial Revenue, VRDN (Textron Project)
5.313% (LOC; Bankers Trust) (a,b)........................................... 7,500,000 7,500,000
Tennessee--3.9%
Oak Ridge, IDB, Solid Waste Revenue (M4 Environmental)
4.05% (LOC; Sun Trust Bank) (a,b)........................................... 10,000,000 10,000,000
Sevier County Public Building Authority, Local Government Public Improvement, VRDN:
3.90%, Series A-1 (Insured; AMBAC and SBPA; Krediet Bank) (a)............... 7,265,000 7,265,000
3.90%, Series B-1 (Insured; AMBAC and SBPA; Krediet Bank) (a)............... 4,600,000 4,600,000
3.90%, Series B-2 (Insured; AMBAC and SBPA; Krediet Bank) (a)............... 4,600,000 4,600,000
Tennessee Housing Development Agency, Refunding
(Homeownership Program) 3.75%, 2/19/98 (Escrowed in; U.S. Treasury Securities) 10,000,000 10,000,000
Texas--15.1%
Brazos River Authority, PCR, VRDN (Utility Electric Co.):
4.10%, Series A (LOC; Morgan Guaranty Trust Co.) (a,b)...................... 11,000,000 11,000,000
Refunding:
3.95%, Series A (Insured; MBIA and LOC; The Bank of New York) (a,b)...... 16,000,000 16,000,000
4.10%, Series B (Insured; AMBAC) (a)..................................... 5,100,000 5,100,000
4.10%, Series C (LOC; Swiss Bank Corp.) (a,b)............................ 7,000,000 7,000,000
Brazos River Harbor Naval District, VRDN:
Brazoria County Revenue (Dow Chemical Co. Project)
4.15% (LOC; Dow Chemical Co.) (a,b)...................................... 19,100,000 19,100,000
Harbor Revenue:
(BASF Corp. Project) 4% (LOC; BASF Corp.) (a,b).......................... 11,500,000 11,500,000
(Dow Chemical Co. Project) 4.15% (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
Gulf Coast Waste Disposal Authority, Environmental Facilities Revenue, VRDN
(Bayer Corp. Project) 4.15% (LOC; Bayer Corp.) (a,b)........................ 18,000,000 18,000,000
</TABLE>
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Investments (continued) November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Principal
Tax Exempt Investments (continued) Amount Value
- ------------------------------------------------------------------------------- ------------ ---------
<S> <C> <C>
Texas (continued)
Harris County Industrial Development Corporation, SWDR 3.90% (LOC; Exxon Corp.)(a,b) $ 9,000,000 $ 9,000,000
Pan-Handle Plains Higher Education Authority Inc., Student Loan Revenue, VRDN
3.90%, Series A (LOC; Student Loan Marketing Association) (a,b)............. 13,000,000 13,000,000
State of Texas, TRAN 4.75%, Series A, 8/31/98.................................. 12,100,000 12,177,043
Utah--1.0%
Intermountain Power Agency, Power Supply Revenue, CP
3.75%, 2/24/98 (Liquidity Facility: Bank of America and Bank of Nova Scotia) 9,000,000 9,000,000
Virginia--2.5%
Charles City and County Industrial Development Authority, Exempt Facilities Revenue
VRDN (Chambers Project) 4.15% (LOC; Morgan Guaranty Trust Co.) (a,b)........ 7,400,000 7,400,000
Peninsula Ports Authority, Revenue, Refunding, VRDN (Zelger Coal)
4.10% (LOC; Bank of America) (a,b).......................................... 16,000,000 16,000,000
------------
TOTAL INVESTMENTS (cost $923,645,666).......................................... $923,646,737
============
</TABLE>
Summary of Abbreviations
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C>
AMBAC American Municipal Bond Assurance Corporation MFHR Multi-Family Housing Revenue
BAN Bond Anticipation Notes PCR Pollution Control Revenue
CP Commercial Paper RAN Revenue Anticipation Notes
EDR Economic Development Revenue RRR Resources Recovery Revenue
FGIC Financial Guaranty Insurance Company 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
MBIA Municipal Bond Investors Assurance
Insurance Corporation
</TABLE>
Summary of Combined Ratings
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fitch (c) or Moody's or Standard & Poor's Percentage of Value
- ------ ------- ---------------- -----------------
<S> <C> <C> <C>
F1+ / F1 VMIG1, MIG1, P1(d) SP1+/SP1, A1+/A1(d) 94.0%
AAA/AAA (e) Aaa/A/ (e) AAA/AA (e) 1.5
Not Rated (f) Not Rated (f) Not Rated (f) 4.5
-------
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 November 30, 1997, 61.3% 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 and 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.
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Assets and Liabilities November 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Cost Value
-------------- --------------
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments $923,645,666 $923,646,737
Interest receivable.............................. 6,885,444
Prepaid expenses and other assets................ 70,146
--------------
930,602,327
--------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.... 315,325
Cash overdraft due to Custodian.................. 3,811,689
Accrued expenses................................. 151,336
--------------
4,278,350
--------------
NET ASSETS..................................................................... $926,323,977
==============
REPRESENTED BY: Paid-in capital.................................. $926,333,816
Accumulated undistributed investment income--net. 133,931
Accumulated net realized gain (loss) on investments (142,699)
Accumulated net unrealized appreciation (depreciation)
on investments................................. (1,071)
--------------
NET ASSETS..................................................................... $926,323,977
==============
SHARES OUTSTANDING
(5 billion shares of $.01 par value Common Stock authorized)................... 928,109,352
NET ASSET VALUE, offering and redemption price per share....................... $1.00
=====
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Operations Six Months Ended November 30, 1997 (Unaudited)
INVESTMENT INCOME
<TABLE>
<S> <C> <C> <C>
INCOME Interest Income............................ $18,282,547
EXPENSES: Management fee--Note 2(a).................. $2,415,323
Shareholder servicing costs--Note 2(b)..... 458,886
Registration fees.......................... 72,627
Custodian fees............................. 40,356
Professional fees.......................... 36,016
Directors' fees and expenses--Note 2(c).... 28,185
Prospectus and shareholders' reports....... 14,687
Miscellaneous.............................. 10,353
------------
Total Expenses........................... 3,076,433
-----------
INVESTMENT INCOME--NET................................................... 15,206,114
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) (20,735)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS..................... $15,185,379
===========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
November 30, 1997 Year Ended
(Unaudited) May 31, 1997
------------------ --------------
<S> <C> <C>
OPERATIONS:
Investment income--net.................................................. $ 15,206,114 $ 29,166,497
Net realized gain (loss) on investments................................ (20,735) (2,582)
Net unrealized appreciation (depreciation) on investments.............. -- (6,289)
-------------- ---------------
Net Increase (Decrease) in Net Assets Resulting from Operations..... 15,185,379 29,157,626
-------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net.................................................. (15,206,101) (29,166,510)
Net realized gain on investments....................................... -- (22,722)
-------------- ---------------
Total Dividends..................................................... (15,206,101) (29,189,232)
-------------- ---------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold.......................................... 1,356,242,062 3,175,303,462
Dividends reinvested................................................... 9,246,673 18,593,500
Cost of shares redeemed................................................ (1,463,792,707) (3,196,745,808)
Net assets received in connection with reorganization
(Dreyfus Michigan Municipal Money Market Fund)...................... -- 42,809,635
Net assets received in connection with reorganization (Dreyfus Ohio
Municipal Money Market Fund)........................................ -- 34,121,878
-------------- ---------------
Increase (Decrease) in Net Assets from Capital Stock Transactions... (98,303,972) 74,082,667
-------------- ---------------
Total Increase (Decrease) in Net Assets.......................... (98,324,694) 74,051,061
NET ASSETS:
Beginning of Period.................................................... 1,024,648,671 950,597,610
-------------- ---------------
End of Period.......................................................... $ 926,323,977 $ 1,024,648,671
============== ===============
Undistributed investment income--net....................................... $ 133,931 $ 133,918
-------------- ---------------
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
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.
<TABLE>
<CAPTION>
Six Months Ended Year Ended May 31,
November 30, 1997 -----------------------------------------------------
PER SHARE DATA: (Unaudited) 1997 1996 1995 1994 1993
----------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period. $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
Investment Operations:
Investment income--net................ .016 .029 .031 .029 .020 .022
----- ----- ----- ----- ----- -----
Distributions:
Dividends from investment income--net. (.016) (.029) (.031) (.029) (.020) (.022)
----- ----- ----- ----- ----- -----
Net asset value, end of period....... $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- -----
TOTAL INVESTMENT RETURN................. 3.17%* 2.98% 3.16% 2.98% 2.00% 2.23%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .64%* .65% .64% .62% .62% .62%
Ratio of net investment income
to average net assets............. 3.15%* 2.94% 3.11% 2.91% 1.98% 2.22%
Net Assets, end of period (000's Omitted) $926,324 $1,024,649 $950,598 $933,311 $1,117,002 $1,413,815
<FN>
- ------------------
* Annualized.
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited)
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.
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.
(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 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.
The Fund has an unused capital loss carryover of approximately $99,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1997. 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 and $2,000 expires in fiscal 2005.
At November 30, 1997, 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.
<PAGE>
Dreyfus Municipal Money Market Fund, Inc.
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(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
November 30, 1997, the Fund was charged $276,778 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 November 30, 1997, the Fund was charged $161,750 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.
<PAGE>
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. 910SA9711
