<PAGE>
ANNUAL REPORT FEBRUARY 28, 1995
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors and Shareholders of
Nuveen Tax-Exempt Money Market Fund, Inc.:
We have audited the accompanying statement of net assets of
Nuveen Tax-Exempt Money Market Fund, Inc. (a Maryland
corporation), including the portfolio of investments, as of
February 28, 1995, and the related statement of operations
for the year then ended, the statements of changes in net
assets for each of the two years in the period then ended and
the financial highlights for the periods indicated thereon.
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
February 28, 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 net assets of Nuveen Tax-Exempt Money Market
Fund, Inc. as of February 28, 1995, the results of its
operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended and
the financial highlights for the periods indicated thereon in
conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Chicago, Illinois,
April 3, 1995
21
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
ALABAMA - 4.1%
$ 21,000,000 Birmingham Medical Clinic Board
(University of Alabama Health Services
Foundation), Variable Rate Demand Bonds,
3.850%, 12/01/26+ A-1+ $ 21,000,000
5,935,000 Boaz Industrial Development Board
(Parker-Hannifin Corporation Project),
Variable Rate Demand Bonds,
4.050%, 9/01/12+ Aa-2 5,935,000
4,000,000 Marshall County, Special Obligation
School Refunding Warrants, Series 1994,
Variable Rate Demand Bonds,
4.150%, 2/01/12+ A-1+ 4,000,000
- -------------------------------------------------------------------------------
ALASKA - 2.0%
15,000,000 Valdez Marine Terminal (Exxon Pipeline
Company Project), 1993-C, Commercial
Paper, 4.150%, 4/6/95 VMIG-1 15,000,000
- -------------------------------------------------------------------------------
ARIZONA - 2.8%
6,800,000 Maricopa County Pollution Control
Corporation (Arizona Public Service
Company, Palo Verde Project), Variable
Rate Demand Bonds, 3.900%, 5/01/29+ A-1+ 6,800,000
7,500,000 Maricopa County Pollution Control
Corporation (Arizona Public Service
Company, Palo Verde Project, Series E),
Variable Rate Demand Bonds,
4.000%, 5/01/29+ P-1 7,500,000
2,000,000 Maricopa County Elementary School
District No. 6 (Washington Elementary
School, Series 1994B), Tax Anticipation
Notes, 5.000%, 7/28/95 SP-1+ 2,005,986
4,500,000 Maricopa County Unified School District
No. 69 (Paradise Valley Unified School
District), Series 1994B, Tax
Anticipation Notes, 5.000%, 7/28/95 SP-1+ 4,513,470
- -------------------------------------------------------------------------------
ARKANSAS - 0.4%
3,000,000 Arkansas Hospital Equipment Finance
Authority (Washington Regional Medical
Center), Variable Rate Demand Bonds,
4.350%, 10/01/98+ VMIG-1 3,000,000
- -------------------------------------------------------------------------------
CALIFORNIA - 19.2%
20,000,000 California 1994-1995 Revenue Anticipation
Index Notes, Series B, Variable Rate
Demand Bonds, 4.140%, 6/28/95 MIG-1 20,000,000
20,000,000 California Pollution Control Finance
Authority (Pacific Gas and Electric),
Commercial Paper, 4.000%, 4/10/95 VMIG-1 20,000,000
18,000,000 California School Cash Reserve Program
Authority, 1994 Pool Bonds, Series A
Notes, 4.500%, 7/05/95 MIG-1 18,041,994
23,235,000 Los Angeles County, 1994-1995 Tax
Anticipation Notes, 4.500%, 6/30/95 MIG-1 23,249,487
33,000,000 San Bernardino County Housing Authority
(Highland Hills), Commercial Paper,
4.900%, 5/01/15 (Optional put 5/01/95) N/R 33,000,000
20,400,000 San Bernardino County Transportation
Authority, Limited Tax Bonds, Series
1994A, Variable Rate Demand Bonds,
4.100%, 3/01/10+ VMIG-1 20,400,000
8,400,000 San Francisco Redevelopment Agency,
Multi-Family Housing (Bayside Village),
Variable Rate Demand Bonds,
3.900%, 12/01/05+ VMIG-1 8,400,000
</TABLE>
22
<PAGE>
ANNUAL REPORT FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
COLORADO - 1.8%
$ 6,800,000 Adams County Industrial Development
(Clear Creek Business Park Project),
Variable Rate Demand Bonds,
4.050%, 11/01/08+ P-1 $ 6,800,000
6,860,000 Commerce City (Golf Enterprise), Variable
Rate Demand Bonds 1994, 4.250%,
11/01/21+ MIG-1 6,860,000
- -------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 4.1%
5,400,000 District of Columbia General Obligation,
General Fund Recovery, Variable Rate
Demand Bonds, 4.500%, 6/01/03+ A-1+ 5,400,000
25,500,000 District of Columbia General Obligation,
Series 1991B-3, Variable Rate Demand
Bonds, 4.500%, 6/01/03+ A-1+ 25,500,000
- -------------------------------------------------------------------------------
FLORIDA - 7.7%
20,000,000 Florida Housing Finance Agency, Multi-
Family, 1985 Series D
(Kings Colony), Variable Rate Demand
Bonds, 4.125%, 8/01/06+ VMIG-1 20,000,000
1,900,000 Brevard County Housing Finance Authority,
Multi-Family Housing (Shore View
Apartments Projects), 1995, Variable
Rate Demand Bonds, 4.250%, 2/01/15+ A-1 1,900,000
7,000,000 Hialeah Hospital, Series 1989, Variable
Rate Demand Bonds,
4.350%, 2/01/14+ VMIG-1 7,000,000
1,600,000 Jacksonville Health Facilities Authority
(Baptist Medical Center), Series 1993,
Variable Rate Demand Bonds,
3.950%, 6/01/08+ P-1 1,600,000
7,700,000 Miami Health Facilities Authority (Miami
Jewish Home and Hospital for the Aged,
Inc.), Series 1992, Variable Rate Demand
Bonds, 4.050%, 3/01/12+ Aa-3 7,700,000
15,000,000 Sunshine State Governmental Financing,
Commercial Paper,
4.200%, 5/5/95 VMIG-1 15,000,000
5,000,000 West Orange Memorial Hospital, Series
1991A, Commercial Paper, 4.150%, 4/11/95 VMIG-1 5,000,000
- -------------------------------------------------------------------------------
GEORGIA - 5.5%
8,900,000 Georgia Municipal Gas Authority (Transco
Portfolio Project), Commercial Paper,
3.900%, 3/27/95 VMIG-1 8,900,000
15,000,000 Columbia Elderly Authority, Residential
Care Facilities (Augusta Resource Center
on Aging Inc.), Variable Rate Demand
Bonds, 4.050%, 1/01/21+ Aa-3 15,000,000
4,875,000 Floyd County Environmental Improvement
(Georgia-Kraft), Variable Rate Demand
Bonds, 3.950%, 12/01/15+ P-1 4,875,000
13,000,000 Fulton County Housing Authority, Multi-
Family Housing (Spring Creek Crossing
Project), Variable Rate Demand Bonds,
4.100%, 10/01/24+ A-1+ 13,000,000
- -------------------------------------------------------------------------------
IDAHO - 1.0%
8,000,000 Nez Perce Pollution Control (Potlatch),
Variable Rate Demand Bonds,
4.000%, 12/01/14+ A-1+ 8,000,000
</TABLE>
23
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
ILLINOIS - 7.8%
Illinois General Obligation Notes:
$ 15,000,000 4.750%, 4/17/95 MIG-1 $ 15,017,228
9,000,000 4.750%, 6/15/95 MIG-1 9,005,771
2,295,000 Illinois Health Facilities Authority
(Alexian Brothers Medical Center
Project), Commercial Paper, 4.200%,
5/8/95 A-1+ 2,295,000
6,500,000 Chicago General Obligation, Variable Rate
Demand Bonds,
4.000%, 1/01/10+ VMIG-1 6,500,000
17,000,000 Chicago O'Hare International Airport
(American Airlines), Series 1983,
Variable Rate Demand Bonds, 3.950%,
12/01/17+ VMIG-1 17,000,000
9,200,000 Chicago O'Hare International Airport
(American Airlines), Series 1983D,
Variable Rate Demand Bonds,
3.950%, 12/01/17+ VMIG-1 9,200,000
- -------------------------------------------------------------------------------
IOWA - 3.0%
22,665,000 Iowa School Corporations, Warrant
Certificates, Series A 1994, Municipal
Notes, 4.250%, 7/17/95 MIG-1 22,718,656
- -------------------------------------------------------------------------------
KANSAS - 0.8%
6,000,000 Manhattan Industrial Development Board
(Parker-Hannifin Corporation), Variable
Rate Demand Bonds, 4.050%, 9/01/09+ Aa-2 6,000,000
- -------------------------------------------------------------------------------
KENTUCKY - 1.3%
10,000,000 Louisville and Jefferson County,
Metropolitan Sewer District, Series
1995A, Variable Rate Demand Bonds,
4.400%, 3/01/96+ A-1 10,000,000
- -------------------------------------------------------------------------------
LOUISIANA - 0.4%
3,500,000 Jefferson Parish Hospital, Service
District No. 2, Series 1985, Variable
Rate Demand Bonds, 4.100%, 12/01/15+ VMIG-1 3,500,000
- -------------------------------------------------------------------------------
MICHIGAN - 0.7%
5,000,000 Michigan State Strategic Fund Pollution
Control (Consumers Power Company),
Variable Rate Demand Bonds,
4.000%, 4/15/18+ P-1 5,000,000
- -------------------------------------------------------------------------------
NEBRASKA - 0.6%
4,480,000 Scotts Bluff County Hospital Authority 1,
Elderly Residential Facility, GNMA (West
Village), Variable Rate Demand Bonds,
4.250%, 12/01/31+ A-1 4,480,000
- -------------------------------------------------------------------------------
NEW JERSEY - 0.8%
6,058,800 Ocean Township Sewer Authority, 1985
Series A, Variable Rate Demand Bonds,
4.250%, 12/01/11+ Aaa 6,058,800
- -------------------------------------------------------------------------------
NEW YORK - 11.5%
10,800,000 New York State Energy Research and
Development Authority (Niagara Power
Corporation), Variable Rate Demand
Bonds, 4.100%, 7/01/15+ A-1+ 10,800,000
12,000,000 New York State Energy Research and
Development Authority, (New York State
Electric and Gas Company), 1985 Series
D, Commercial Paper, 4.000%, 4/07/95 A-1+ 12,000,000
</TABLE>
24
<PAGE>
ANNUAL REPORT FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
NEW YORK (CONTINUED)
$ 7,300,000 New York State Thruway Authority,
Variable Rate Demand Bonds, 3.800%,
1/01/24+ VMIG-1 $ 7,300,000
10,000,000 New York City Anticipation Notes, Fiscal
1995, Series A, 4.500%, 4/12/95 MIG-1 10,004,660
New York City General Obligation,
Variable Rate Demand Bonds:
6,500,000 3.950%, 2/01/21+ VMIG-1 6,500,000
6,200,000 3.950%, 2/01/22+ VMIG-1 6,200,000
2,200,000 New York City General Obligation,
Variable Rate Demand Bonds, Fiscal 1994
B-4, 4.000%, 8/15/21+ VMIG-1 2,200,000
14,600,000 New York City Municipal Water Authority,
Water and Sewer, Variable Rate Demand
Bonds, 3.900%, 6/15/23+ VMIG-1 14,600,000
18,000,000 New York City Housing Development (East
96th Street), Variable Rate Demand
Bonds, 3.800%, 8/01/15+ VMIG-1 18,000,000
- -------------------------------------------------------------------------------
NORTH CAROLINA - 3.1%
7,100,000 North Carolina Medical Care Commission,
Variable Rate Demand Bonds,
4.050%, 12/01/25+ A-1+ 7,100,000
12,400,000 North Carolina Medical Care Commission,
Hospital Pooled Financing (Duke
University Hospital), Variable Rate
Demand Bonds, 3.900%, 10/01/20+ VMIG-1 12,400,000
4,000,000 Wake County Industrial Facilities and
Pollution Control Finance Authority,
Commercial Paper, 3.850%, 4/13/95 P-1 4,000,000
- -------------------------------------------------------------------------------
OHIO - 1.9%
9,000,000 Ohio Air Quality Development Authority,
Pollution Control (Cincinnati Gas and
Electric Company), 1985A, Commercial
Paper, 3.700%, 3/06/95 A-1+ 9,000,000
5,200,000 Montgomery County (Miami Valley
Hospital), Commercial Paper, 4.250%,
4/07/95 VMIG-1 5,200,000
- -------------------------------------------------------------------------------
OREGON - 1.9%
4,700,000 Multnomah County, Tax Anticipation Notes,
4.500%, 6/30/95 MIG-1 4,715,811
5,000,000 Port of Morrow (Portland General
Electric-Boardman Project), Variable
Rate Demand Bonds, 4.000%, 10/01/13+ VMIG-1 5,000,000
1,400,000 Port of St. Helen's, Pollution Control
(Portland General Electric), Variable
Rate Demand Bonds, 4.000%, 4/01/10+ VMIG-1 1,400,000
3,300,000 Port of St. Helen's, Pollution Control
(Portland General Electric),
1985-B, Variable Rate Demand Bonds,
4.000%, 6/01/10+ VMIG-1 3,300,000
- -------------------------------------------------------------------------------
PENNSYLVANIA - 2.9%
2,500,000 Philadelphia Tax Anticipation Notes,
Series B, 1994-1995, 4.750%, 6/15/95 MIG-1 2,500,625
6,000,000 Philadelphia School District Tax,
Anticipation Notes, 1994-1995, 4.750%,
6/30/95 MIG-1 6,012,908
8,115,000 Schuylkill County Industrial Development
Authority, Resource Recovery
(Northeastern Power Company Project),
1985 Variable Rate Demand Bonds, 3.800%,
12/01/11+ A-1 8,115,000
</TABLE>
25
<PAGE>
PORTFOLIO OF INVESTMENTS
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 5,600,000 Washington County Authority, Higher
Education, Pooled Equipment Lease,
Series 1985A, Variable Rate Demand
Bonds,
4.100%, 11/01/05+ VMIG-1 $ 5,600,000
- -------------------------------------------------------------------------------
SOUTH DAKOTA - 0.7%
5,000,000 South Dakota Health and Education
Authority (McKennan Hospital), Series
1994, Variable Rate Demand Bonds,
4.150%, 7/01/14+ VMIG-1 5,000,000
- -------------------------------------------------------------------------------
TEXAS - 7.3%
12,200,000 Texas Small Business Industrial
Development Corporation, Variable Rate
Demand Bonds, 4.150%, 7/01/26+ VMIG-1 12,200,000
27,350,000 Texas Tax Anticipation Notes, 5.000%,
8/31/95 MIG-1 27,450,534
2,500,000 Angelina and Neches River Authority,
Solid Waste Disposal, Series 1984B,
Variable Rate Demand Bonds, 3.900%,
5/01/14+ VMIG-1 2,500,000
5,000,000 Austin Combined Utility Systems (Travis
and Williamson Counties), Commercial
Paper, Series A, 4.200%, 5/10/95 A-1+ 5,000,000
2,000,000 Montgomery County Industrial Development
Corporation (Houston Area Research
Center), Variable Rate Demand Bonds,
3.850%, 12/01/15+ A-1+ 2,000,000
1,900,000 San Antonio Industrial Development
Authority (Rivercenter Associates
Project), Variable Rate Demand Bonds,
4.150%, 12/01/12+ Aa-3 1,900,000
2,300,000 Southwest Higher Education Authority,
Southern Methodist University, Variable
Rate Demand Bonds, 4.000%, 7/01/15+ VMIG-1 2,300,000
2,400,000 Tarrant County Health Facilities
Corporation, Retirement Cumberland,
Variable Rate Demand Bonds, 3.950%,
1/01/21+ A-1 2,400,000
- -------------------------------------------------------------------------------
UTAH - 2.6%
14,950,000 Intermountain Power Agency, Power Supply,
Series 1985E, Commercial Paper,
3.550%, 7/01/21 (Optional Put 6/15/95) VMIG-1 14,950,000
4,650,000 West Valley City Industrial Development
(Johnson Matthey Project), Variable Rate
Demand Bonds, 3.850%, 12/01/11+ N/R 4,650,000
- -------------------------------------------------------------------------------
VIRGINIA - 0.7%
4,300,000 Fairfax County Industrial Development
Authority (Fairfax Hospital System),
Variable Rate Demand Bonds,
4.050%, 10/01/25+ VMIG-1 4,300,000
1,400,000 Henrico County Industrial Development
Health Facility, Series 1994 (The
Hermitage at Cedarfield), Variable Rate
Demand Bonds, 4.000%, 5/01/24+ VMIG-1 1,400,000
- -------------------------------------------------------------------------------
WASHINGTON - 2.1%
16,000,000 Washington State Housing Finance
Commission (Emerald Heights Project),
Variable Rate Demand Bonds,
3.950%, 1/01/21+ A-1 16,000,000
- -------------------------------------------------------------------------------
WISCONSIN - 1.6%
8,000,000 Wisconsin Health and Educational Facility
Authority (Felician Health Care,
Inc), Variable Rate Demand Bonds,
4.150%, 1/01/19+ VMIG-1 8,000,000
3,935,000 River Falls Commercial Development
(Erdeco Partnership Project), Variable
Rate Demand Bonds, 4.500%, 11/01/13+ Aa-3 3,935,000
</TABLE>
26
<PAGE>
ANNUAL REPORT FEBRUARY 28, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT DESCRIPTION RATINGS* MARKET VALUE
- -------------------------------------------------------------------------------
<C> <S> <C> <C>
WYOMING - 0.7%
4,100,000 Converse Company Pollution Control
(Pacificorp Project), Commercial Paper,
4.000%, 4/12/95 A-1+ 4,100,000
1,000,000 Sweetwater County Pollution Control
(Pacificorp), Variable Rate Demand
Bonds, 3.850%, 12/01/14+ A-1+ 1,000,000
- -------------------------------------------------------------------------------
$762,903,800 Total Investments - 101.0% 763,190,930
- -------------------------------------------------------------------------------
- -------------------
Other Assets Less Liabilities - (1.0%) (3,947,277)
- -------------------------------------------------------------------------------
Net Assets - 100% $759,243,653
</TABLE>
- --------------------------------------------------------------------------------
* Ratings (not covered by the report of independent public accountants): Using
the higher of Standard & Poor's or Moody's rating.
N/R - Investment is not rated.
+ The security has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term security. The rate disclosed
is that currently in effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
27
<PAGE>
STATEMENT OF NET ASSETS
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.
<TABLE>
<CAPTION>
- -----------------------------------------------------
<S> <C>
ASSETS
Investments in short-term municipal
securities, at amortized cost (note
1) $763,190,930
Cash 983,589
Interest receivable 6,838,322
Other assets 20,993
------------
Total assets 771,033,834
------------
LIABILITIES
Payable for investments purchased 9,300,000
Accrued expenses:
Management fees (note 3) 227,762
Other 248,029
Dividends payable 2,014,390
------------
Total liabilities 11,790,181
------------
Net assets applicable to shares
outstanding
(note 4) $759,243,653
------------
Shares outstanding 759,243,653
------------
Net asset value, offering and
redemption price per share (net
assets divided by shares outstanding) $ 1.00
------------
</TABLE>
See accompanying notes to financial statements.
28
<PAGE>
ANNUAL REPORT FEBRUARY 28, 1995
STATEMENT OF OPERATIONS
Year ended February 28, 1995
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.
<TABLE>
<CAPTION>
- -------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Interest income (note 1) $25,518,113
-----------
Expenses:
Management fees (note 3) 3,225,810
Shareholders' servicing agent fees and
expenses 22,226
Custodian's fees and expenses 197,972
Directors' fees and expenses (note 3) 11,003
Professional fees 28,944
Shareholders' reports--printing and
mailing expenses 65,582
Federal and state registration fees 53,671
Other expenses 34,293
-----------
Total expenses 3,639,501
-----------
Net investment income 21,878,612
Net gain (loss) from investment
transactions (30,535)
-----------
Net increase in net assets from
operations $21,848,077
-----------
</TABLE>
See accompanying notes to financial statements.
29
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year ended Year ended
2/28/95 2/28/94
- -----------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 21,878,612 $ 26,382,052
Net realized gain (loss) from investment
transactions (30,535) (24,488)
-------------- --------------
Net increase in net assets from operations 21,848,077 26,357,564
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (21,848,077) (26,357,564)
-------------- --------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per
share) (note 1)
Net proceeds from sale of shares 5,126,352,054 7,427,356,857
Net asset value of shares issued to
shareholders due to reinvestment of
distributions from net investment income
and from net realized gains from
investment transactions 5,501,313 6,336,358
-------------- --------------
5,131,853,367 7,433,693,215
Cost of shares redeemed (5,348,442,330) (8,054,874,958)
-------------- --------------
Net increase (decrease) in net assets
derived from Common share transactions (216,588,963) (621,181,743)
Net assets at the beginning of year 975,832,616 1,597,014,359
-------------- --------------
Net assets at the end of year $ 759,243,653 $ 975,832,616
-------------- --------------
</TABLE>
See accompanying notes to financial statements.
30
<PAGE>
NOTES TO FINANCIAL STATEMENTS ANNUAL REPORT FEBRUARY 28, 1995
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The Nuveen Tax-Exempt Money Market Fund, Inc. (the "Fund") is
registered under the Investment Company Act of 1940 as an
open-end, diversified management investment company. The
following is a summary of significant accounting policies
followed by the Fund in the preparation of its financial
statements in accordance with generally accepted accounting
principles.
Securities Valuation
Investments consist of short-term municipal securities
maturing within one year from the date of acquisition.
Securities with a maturity of more than one year in all cases
have variable rate and demand features qualifying them as
short-term securities and are traded and valued at amortized
cost. On a dollar-weighted basis, the average maturity of all
such securities must be 90 days or less (at February 28,
1995, the dollar-weighted average life was 37 days).
Securities Transactions
Securities transactions are recorded on a trade date basis.
Realized gains and losses from such transactions are
determined on the specific identification method. Securities
purchased or sold on a when-issued or delayed delivery basis
may be settled a month or more after the transaction date.
The securities so purchased are subject to market fluctuation
during this period. The Fund has instructed the custodian to
segregate assets in a separate account with a current value
at least equal to the amount of its purchase commitments. At
February 28, 1995, there were no such purchase commitments.
Interest Income Interest income is determined on the basis of interest
accrued, adjusted for premium amortized and discount earned.
31
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.
Dividends and Distributions to Shareholders
Net investment income, adjusted for realized short-term gains
and losses on investment transactions, is declared as a
dividend to shareholders of record as of the close of each
business day and payment is made or reinvestment is credited
to shareholder accounts after month-end.
Federal Income Taxes
The Fund intends to comply with the requirements of the
Internal Revenue Code applicable to regulated investment
companies by distributing all of its income including any net
realized gains from investments, to shareholders. Therefore,
no federal income tax provision is required. Furthermore, the
Fund intends to satisfy conditions which will enable interest
from municipal securities, which is exempt from regular
federal income tax, to retain such tax exempt status when
distributed to shareholders. All income dividends paid during
the year ended February 28, 1995, have been designated Exempt
Interest Dividends.
Insurance Commitments
The Fund has obtained commitments (each a "Commitment") from
Municipal Bond Investors Assurance Corporation ("MBIA") with
respect to certain designated bonds held by the Fund for
which credit support is furnished by banks ("Approved Banks")
approved by MBIA under its established credit approval
standards. Under the terms of a Commitment, if the Fund were
to determine that certain adverse circumstances relating to
the financial condition of the Approved Bank had occurred,
the Fund could cause MBIA to issue a "while-in-fund"
insurance policy covering the underlying bonds; after time
and subject to further terms and conditions, the Fund could
obtain from MBIA an "insured-to-maturity" insurance policy as
to the covered bonds. Each type of insurance policy would
insure payment of interest on the bonds and payment of
principal at maturity. Although such insurance would not
guarantee the market value of the bonds or the value of the
Fund's shares, the Fund believes that its ability to obtain
insurance for such bonds under such adverse circumstances
will enable the Fund to hold or dispose of such bonds at a
price at or near their par value.
32
<PAGE>
ANNUAL REPORT FEBRUARY 28, 1995
Derivative Financial Instruments
In October 1994, the Financial Accounting Standards Board
(FASB) issued Statement of Financial Accounting Standards No.
119 Disclosure about Derivative Financial Instruments and
Fair Value of Financial Instruments which prescribes
disclosure requirements for transactions in certain
derivative financial instruments including futures, forward,
swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are
authorized to invest in such financial instruments, and may
do so in the future, they did not make any such investments
during the fiscal year ended February 28, 1995, other than
occasional purchases of high quality synthetic money market
securities.
2. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investment
securities during the fiscal year ended February 28, 1995,
aggregated $4,005,558,706 and $4,202,855,766, respectively.
For federal income tax purposes, the cost of investments
owned at February 28, 1995, was the same as the cost for
financial reporting purposes.
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.
3. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Fund's investment management agreement with Nuveen
Advisory Corp. ("the Adviser"), a wholly owned subsidiary of
The John Nuveen Company, the Fund pays the Adviser an annual
management fee, payable monthly, as follows:
<TABLE>
<CAPTION>
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
<S> <C>
For the first $500,000,000 .400 of 1%
For the next $500,000,000 .375
For the next $1,000,000,000 .350
For net assets over $2,000,000,000 .325
</TABLE>
- --------------------------------------------------------------------------------
The management fee is reduced by, or the Adviser assumes
certain Fund expenses in an amount necessary to prevent the
Fund's total expenses (including the Adviser's fee, but
excluding interest, taxes, fees incurred in acquiring and
disposing of portfolio securities and, to the extent
permitted, extraordinary expenses) in any fiscal year from
exceeding .45 of 1% of the average daily net asset value of
the Fund.
The management fee referred to above compensates the Adviser
for overall investment advisory and administrative services,
and general office facilities. The Fund pays no compensation
directly to its directors who are affiliated with the Adviser
or to its officers, all of whom receive remuneration for
their services to the Fund from the Adviser.
4. COMPOSITION OF NET ASSETS
At February 28, 1995, the Fund had 5 billion shares of $.01
par value common stock authorized. Net assets consisted of
$759,243,653 capital paid in.
34
<PAGE>
ANNUAL REPORT FEBRUARY 28, 1995
5. INVESTMENT COMPOSITION
The Fund invests in municipal securities which include
general obligation, escrowed and revenue bonds. At February
28, 1995, the revenue sources by municipal purpose, expressed
as a percent of total investments, were as follows:
<TABLE>
<CAPTION>
- -------------------------------------
<S> <C>
Revenue bonds:
Pollution control facilities 24%
Health care facilities 17
Housing facilities 15
Water/Sewer facilities 4
Electrical utilities 2
Transportation 1
Lease rental facilities 1
Educational facilities 1
Other 8
General obligation bonds 27
- -------------------------------------
100%
</TABLE>
At February 28, 1995, 74% of the investments owned by the
Fund have credit enhancements (letters of credit, guarantees
or insurance) issued by third party domestic or foreign banks
or other institutions.
For additional information regarding each investment
security, refer to the Portfolio of Investments.
35
<PAGE>
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Income from investment
operations Less distributions
-----------------------------------------------------------
Net realized
and
Net asset unrealized Dividends
value Net gain (loss) from net Distributions
beginning investment from investment from
of period income investments income capital gains
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------
Year ended
2/28/95 $1.000 $.027 $-- $(.027) $--
2/28/94 1.000 .020 -- (.020) --
2/28/93 1.000 .026 -- (.026) --
10/1/91 to
2/29/92 1.000 .016 -- (.016) --
Year ended
9/30/91 1.000 .049 -- (.049) --
9/30/90 1.000 .058 -- (.058) --
9/30/89 1.000 .060 -- (.060) --
9/30/88 1.000 .049 -- (.049) --
9/30/87 1.000 .041 -- (.041) --
9/30/86 1.000 .048 -- (.048) --
9/30/85 1.000 .052 -- (.052) --
- ------------------------------------------------------------------------------------
</TABLE>
* Annualized.
36
<PAGE>
ANNUAL REPORT FEBRUARY 28, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio/supplemental data
-------------------------------------------
Net
asset Total return Ratio of net
value on Net assets Ratio of investment income
end of net asset end of period expenses to average to average
period value (in thousands) net assets net assets
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------
- --------------------------------------------------------------------------
$1.000 2.69% $ 759,244 .44% 2.65%
1.000 2.04 975,833 .42 2.04
1.000 2.57 1,597,014 .40 2.58
1.000 1.56 2,332,021 .39* 3.71*
1.000 4.85 1,927,583 .38 4.81
1.000 5.75 1,800,966 .40 5.74
1.000 6.00 1,756,725 .39 6.02
1.000 4.89 2,044,479 .39 4.90
1.000 4.09 1,927,003 .39 4.09
1.000 4.77 2,472,401 .40 4.71
1.000 5.22 1,913,875 .40 5.18
- --------------------------------------------------------------------------
</TABLE>
37
