<PAGE>
[LOGO}
Nuveen Tax-Exempt
Money Market Fund, Inc.
Semiannual Report August 31, 1996
<PAGE>
CONTENTS
3 Portfolio of investments
9 Statement of net assets
10 Statement of operations
11 Statement of changes in net assets
12 Notes to financial statements
16 Financial highlights
<PAGE>
PORTFOLIO OF INVESTMENTS TAX-EXEMPT MONEY MARKET FUND SEMIANNUAL REPORT
(Unaudited) AUGUST 31, 1996
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ALABAMA - 3.7%
$ 9,200,000 The Medical Clinic Board of the City of Birmingham
Medical Clinic Revenue Bonds, UAHSF Series 1991, Variable Rate
Demand Bonds, 3.850%, 12/01/26+ A-1+ $ 9,200,000
5,935,000 Boaz Industrial Development Board (Parker-Hannifin Corporation
Project), Variable Rate Demand Bonds, 3.550%, 9/01/12+ Aa-2 5,935,000
4,000,000 Marshall County Special Obligation School Refunding Warrants,
Series 1994, Variable Rate Demand Bonds, 3.500%, 2/01/12+ A-1+ 4,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.3%
1,700,000 Valdez Marine Terminal (Exxon Pipeline Company), Variable Rate
Demand Bonds, 3.750%, 10/01/25+ A-1+ 1,700,000
- ------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.1%
5,300,000 Maricopa County, Arizona Pollution Control Corporation, Pollution
Control Revenue Refunding Bonds, (Arizona Public Service
Company Palo Verde Project), 1994 Series C, Variable Rate
Demand Bonds, 3.750%, 5/01/29+ A-1+ 5,300,000
10,000,000 Arizona School District Tax Anticipation Note Financing Program,
Paradise Valley Unified School District No. 69 of Maricopa
County, Arizona, 4.400%, 7/31/97 SP-1+ 10,035,166
6,200,000 Sunset Ranch Certificate Trust, Variable Rate Certificates of
Participation, 1991 Series A, 3.450%, 12/01/27+ VMIG-1 6,200,000
5,000,000 Pima County Industrial Development Authority, Multifamily Housing
Revenue Refunding Bonds (Fountains at La Cholla), Variable
Rate Demand Bonds, 3.500%, 12/01/25+ Aa-3 5,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.9%
4,600,000 Arkansas Hospital Equipment Finance Authority (Washington Regional
Medical Center), Variable Rate Demand Bonds, 3.600%, 10/01/98+ VMIG-1 4,600,000
- ------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 0.4%
2,000,000 Regional Airports Improvement Corporation Facilities Sublease Revenue
Bonds, Issue of 1985, Lax Two Corporation (Los Angeles International
Airport), Variable Rate Demand Bonds, 3.700%, 12/01/25+ A-1+ 2,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 2.9%
15,000,000 Connecticut State Special Assessment Unemployment Compensation,
Advance Fund Revenue Bonds, Series 1993C, 3.900%, 11/15/01
(Mandatory Put 7/01/97) VMIG-1 15,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.2%
4,000,000 District of Columbia General Obligation, Series 1992A-5, Variable Rate
Demand Bonds, 3.950%, 10/01/07+ VMIG-1 4,000,000
2,100,000 District of Columbia General Obligation General Fund Recovery Bonds,
Series 1991B, Variable Rate Demand Bonds, 3.950%, 6/01/03+ VMIG-1 2,100,000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FLORIDA - 6.3%
$ 17,000,000 Florida Housing Finance Agency, Multi-Family 1985 Series D (Kings
Colony), Variable Rate Demand Bonds, 3.525%, 8/01/06+ VMIG-1 $17,000,000
7,000,000 Gulf Breeze Series 1995A (Florida Municipal Bond Fund), Variable
Rate Demand Bonds, 3.550%, 3/31/21+ A-1 7,000,000
6,600,000 Miami Health Facilities Authority (Miami Jewish Home and Hospital
for the Aged, Inc.), Series 1992, Variable Rate Demand Bonds,
3.500%, 3/01/12+ Aa-3 6,600,000
2,300,000 Pinellas County Pooled Hospital Loan Program, Variable Rate Demand
Bonds, 3.750%, 12/01/15+ VMIG-1 2,300,000
- -------------------------------------------------------------------------------------------------------------
GEORGIA - 4.7%
12,000,000 Atlanta Board of Education, Tax Anticipation Notes,
4.250%, 12/31/96 MIG-1 12,027,204
9,700,000 Chatham County, Tax Anticipation Notes, 4.500%, 12/31/96 N/R 9,728,169
3,000,000 Columbia Elderly Authority, Residential Care Facilities Revenue Bonds
(Augusta Resource Center on Aging Inc.), Variable Rate
Demand Bonds, 3.500%, 1/01/21+ Aa-3 3,000,000
- -------------------------------------------------------------------------------------------------------------
ILLINOIS - 2.2%
1,200,000 Illinois Development Finance Authority, Pollution Control Revenue
Bonds (Diamond-Star Motors Corporation Project), Series 1985,
Variable Rate Demand Bonds, 3.850%, 12/01/08+ P-1 1,200,000
5,000,000 Illinois Health Facilities Authority, Series 1985 (Condell Memorial
Hospital), Variable Rate Demand Bonds, 3.750%, 11/01/05+ VMIG-1 5,000,000
5,400,000 Chicago O'Hare International Airport (American Airlines),
Variable Rate Demand Bonds, 3.750%, 12/01/17+ P-1 5,400,000
- -------------------------------------------------------------------------------------------------------------
IOWA - 1.9%
10,000,000 Iowa School Corporations, Warrant Certificates, 1996-97 Series A
Note, 4.750%, 6/27/97 MIG-1 10,062,995
- -------------------------------------------------------------------------------------------------------------
KANSAS - 1.1%
6,000,000 Manhattan Industrial Development Board (Parker-Hannifin
Corporation), Variable Rate Demand Bonds, 3.550%, 9/01/09+ Aa-2 6,000,000
- -------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.4%
3,000,000 Kentucky Governmental Agencies, 1996 Cash Flow Borrowing
Program, Certificates of Participation, Tax and Revenue Anticipation
Notes, 4.300%, 6/30/07 N/R 3,003,544
15,000,000 Louisville and Jefferson County Metropolitan Sewer District, 1996A,
Variable Rate Demand Bonds, 3.550%, 3/27/97 SP-1 15,000,000
- -------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.7%
7,000,000 Louisiana Public Facilities Authority (Schwegmann Westside
Expressway Project) Industrial Development Revenue, Variable Rate
Demand Bonds, 3.750%, 12/01/12+ A-2 7,000,000
- -------------------------------------------------------------------------------------------------------------
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
TAX-EXEMPT MONEY MARKET FUND SEMIANNUAL REPORT
AUGUST 31, 1996
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
LOUISIANA (CONTINUED)
$ 3,000,000 Louisiana Recovery District Sales Tax Revenue, Variable Rate
Demand Bonds, 3.850%, 7/01/98+ VMIG-1 $ 3,000,000
4,000,000 Hammond Industrial Development Board (Schwegmann Westside
Expressway Project), Variable Rate Demand Bonds,
3.750%, 11/01/14+ A-2 4,000,000
- -------------------------------------------------------------------------------------------------------------
MARYLAND - 4.6%
14,000,000 Maryland Economic Development Corporation, Adjusted Rate Pooled
Financing (Maryland Municipal Bond Fund), Series 1995,
Variable Rate Demand Bonds, 3.550%, 6/01/20+ A-1 14,000,000
9,940,000 Maryland Industrial Development (Baltimore International Culinary
College), Variable Rate Demand Bonds, 3.900%, 5/01/24+ A-1 9,940,000
- -------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.7%
4,000,000 Michigan Strategic Fund, Adjustable Rate Demand Limited
Obligation, Refunding Revenue Bonds (Consumers Power Company
Project), Series 1993A, 3.650%, 6/15/10+ A-1+ 4,000,000
15,000,000 State of Michigan, Full Faith and Credit General Obligation Notes,
4.000%, 9/30/96 MIG-1 15,009,100
2,100,000 The Economic Development Corporation of the County of Delta,
Environmental Improvement Revenue Bonds, (Mead-Escanaba
Paper Company Project), Series D, Variable Rate Demand Bonds,
3.750%, 12/01/23+ P-1 2,100,000
7,000,000 Detroit City School District, Wayne County State School Aid Notes
(Limited Tax General Obligation), 1996, 4.500%, 5/01/97 SP-1+ 7,024,721
11,800,000 Detroit Downtown Development Authority (Millender Center Project),
Variable Rate Demand Bonds, 3.500%, 12/01/10+ VMIG-1 11,800,000
- -------------------------------------------------------------------------------------------------------------
MINNESOTA - 3.4%
5,000,000 Bloomington Port Authority, Tax Increment Revenue Refunding Bonds
(Mall of America Project), Series 1995A, Variable Rate
Demand Bonds, 3.550%, 2/01/13+ VMIG-1 5,000,000
5,300,000 Minneapolis/St. Paul Housing and Redevelopment Authority, Health
Care (Children's Health Care), Series 1995, Variable Rate Demand
Bonds, 3.850%, 8/15/25+ SP-1+ 5,300,000
7,500,000 St. Paul Housing and Redevelopment Authority, Parking Revenue Bonds,
Series 1995B, Variable Rate Demand Bonds, 3.600%, 8/01/17+ VMIG-1 7,500,000
- -------------------------------------------------------------------------------------------------------------
MISSOURI - 5.5%
3,800,000 Missouri Health and Educational Facilities Authority (St. Francis
Medical Center), Series 1996A, Variable Rate Demand Bonds,
3.800%, 6/01/26+ A-1+ 3,800,000
3,300,000 Kansas City Industrial Development (Research Health System),
Variable Rate Demand Bonds, 3.900%, 4/15/15+ VMIG-1 3,300,000
1,150,000 Kansas City Industrial Development Authority (Research Health
System), Variable Rate Demand Bonds, 3.900%, 10/15/15+ VMIG-1 1,150,000
- -------------------------------------------------------------------------------------------------------------
</TABLE>
5
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
<TABLE>
<CAPTION>
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.--CONTINUED
- ------------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MISSOURI (CONTINUED)
$ 4,370,000 St. Louis County Industrial Development Authority (Friendship
Village of West County Project), Refunding Revenue 1996BB,
Variable Rate Demand Bonds, 3.550%, 9/01/16+ A-1+ $ 4,370,000
8,050,000 St. Louis Land Clearance Redevelopment Authority Parking Facility,
Series 1989, 3.400%, 9/15/19 (Mandatory Put 9/15/96) VMIG-1 8,050,000
8,300,000 St. Louis Land Clearance Redevelopment Authority, Parking Facility
Revenue Refunding Bonds, Series 1996, Variable Rate
Demand Bonds, 3.800%, 9/01/19+ VMIG-1 8,300,000
- ------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.9%
4,455,000 Scottsbluff County Hospital Authority, 1 Elderly Residential Facility,
GNMA (West Village), Variable Rate Demand Bonds,
3.850%, 12/01/31+ A-1 4,455,000
- ------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 1.1%
2,800,000 The City of New York, General Obligation Bonds, Fiscal 1995
Series B, Variable Rate Demand Bonds, 3.750%, 8/15/22+ VMIG-1 2,800,000
3,000,000 New York City Municipal Water Finance Water and Sewer System
Revenue 1994 G, Variable Rate Demand Bonds, 3.800%, 6/15/24+ VMIG-1 3,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.7%
9,000,000 North Carolina Eastern Municipal Power Agency Power System
Revenue, Series 1988 B, Commercial Paper, 3.550%, 9/10/96 A-1+ 9,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
OHIO - 5.5%
10,000,000 Ohio School Districts, 1996 Cash Flow Borrowing Program,
Certificates of Participation, Revenue Anticipation Notes of Certain
Ohio School Districts, Series B, 4.530%, 6/30/97 MIG-1 10,042,119
4,000,000 Dayton Special Facilities Revenue, 1993 Series F (Emery Air Freight
Corp.), Variable Rate Demand Bonds, 3.700%, 10/01/09+ VMIG-1 4,000,000
10,830,000 Greater Cleveland Regional Transit Authority, General Obligation
(Limited Tax), Capital Improvement Bond Anticipation Notes,
Series 1996, Note, 3.900%, 10/17/96 MIG-1 10,834,967
4,000,000 University of Cincinnati General Receipt Bond Anticipation Notes,
Series S1, 3.750%, 3/20/97 MIG-1 4,009,539
- ------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.3%
6,850,000 Holdenville Industrial Authority Correctional Facility Revenue Bonds
Series 1995, Variable Rate Demand Bonds, 3.550%, 7/01/15+ VMIG-1 6,850,000
- ------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.3%
6,800,000 Allegheny County Hospital Development Authority, Commercial
Paper, 3.550%, 10/11/96 VMIG-1 6,800,000
2,675,000 Allegheny County Hospital Development Authority, (Allegheny
County, Pennsylvania), Health Center Revenue Bonds, Series 1990 B
(Presbyterian-University Health System, Inc.),
Variable Rate Demand Bonds, 3.500%, 3/01/20+ VMIG-1 2,675,000
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE>
TAX-EXEMPT MONEY MARKET FUND SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PENNSYLVANIA (CONTINUED)
$ 2,295,000 Allegheny County Hospital Development Authority (Presbyterian
Hospital), Variable Rate Demand Bonds, 3.500%, 3/01/18+ VMIG-1 $ 2,295,000
3,370,000 Montgomery County Higher Education and Health Authority,
Series 1995 (Philadelphia Presbytery Homes, Inc.), Variable Rate
Demand Bonds, 3.550%, 7/01/25+ VMIG-1 3,370,000
2,200,000 The Hospitals and Higher Education Facilities Authority of
Philadelphia, Variable Rate Demand Hospital Revenue Bonds,
Series A of 1991 (Friends Hospital), 3.550%, 3/01/06+ A-1 2,200,000
5,345,000 Washington County Authority, Higher Education Pooled Equipment
Lease Revenue Bonds Series 1985A, Variable Rate Demand Bonds,
3.550%, 11/01/05+ VMIG-1 5,345,000
- -------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.3%
11,935,000 South Dakota Health and Education Facility (McKennan Hospital),
Series 1994, Variable Rate Demand Revenue Bonds, 3.550%, 7/01/14+ VMIG-1 11,935,000
- -------------------------------------------------------------------------------------------------------------
TENNESSEE - 4.0%
16,000,000 The Public Building Authority of the City of Clarksville, Tennessee,
Adjustable Rate Pooled Financing, Revenue Bonds, Series 1994
(Tennessee Municipal Bond Fund), Variable Rate Demand Bonds,
3.550%, 6/01/24+ A-1 16,000,000
4,675,000 Loudon Water and Sewer, Revenue Refunding Bonds, Series 1996
Variable Rate Demand Bonds, 3.550%, 9/01/06+ Aa-2 4,675,000
- -------------------------------------------------------------------------------------------------------------
TEXAS - 3.2%
1,500,000 Angelina and Neches River Authority Industrial Development
Corporation Solid Waste Revenue (Teec Inc. Temple Inland),
Series 1984E, Variable Rate Demand Bonds, 3.750%, 5/01/14+ VMIG-1 1,500,000
6,500,000 Harris County Health Facilities Development Corporation,
Hospital Revenue Bonds (TIRR Project), Series 1987,
Variable Rate Demand Bonds, 3.800%, 10/01/17+ VMIG-1 6,500,000
3,800,000 North Central Texas Health Facilities Development Corporation
(Presbyterian Medical Center), Variable Rate Demand Bonds,
3.700%, 12/01/15+ VMIG-1 3,800,000
4,900,000 Plano Health Facilities Development Corporation (Children's and
Presbyterian Health Care Center), Commercial Paper, 3.300%, 9/09/96 VMIG-1 4,900,000
- -------------------------------------------------------------------------------------------------------------
UTAH - 4.5%
5,000,000 Utah County Tax and Revenue Anticipation Notes, Series 1996,
4.500%, 12/31/96 N/R 5,012,161
8,200,000 Intermountain Power Agency, Power Supply Revenue Series 1985-E,
Commercial Paper, 3.450%, 9/05/96 VMIG-1 8,200,000
7,100,000 Intermountain Power Agency, Power Supply Revenue Series 1985-E,
Commercial Paper, 3.550%, 10/08/96 VMIG-1 7,100,000
3,000,000 Weber County, Utah, Tax and Revenue Anticipation Notes,
Series 1996B, 4.250%, 12/30/96 MIG-1 3,006,319
- -------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE>
PORTFOLIO OF INVESTMENTS
(Unaudited)
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.--CONTINUED
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
PRINCIPAL AMORTIZED
AMOUNT DESCRIPTION RATINGS* COST
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
VIRGINIA - 0.6%
$ 3,300,000 Industrial Development Authority of the County of Henrico, Health
Facility Revenue Bonds (The Hermitage at Cedarfield),
Series 1994, Variable Rate Demand Bonds, 3.900%, 5/01/24+ VMIG-1 $ 3,300,000
- --------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.7%
15,345,000 Washington State Housing Finance Commission (Emerald Heights
Project), Variable Rate Demand Bonds, 4.250%, 1/01/21+ A-2 15,345,000
9,000,000 Washington Student Loan Agency Series 1984A, Variable Rate
Demand Bonds, 3.650%, 1/01/01+ VMIG-1 9,000,000
- --------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.9%
9,705,000 West Virginia Housing Development Fund Interim Financing Notes,
1996 Series D, 3.600%, 10/31/96 N/R 9,705,000
- --------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.0%
6,800,000 Wisconsin Health and Educational Facilities Authority, Series 1988A
(Alexian Village of Milwaukee), Commercial Paper, 3.750%, 9/11/96 VMIG-1 6,800,000
3,875,000 River Falls Commercial Development Revenue Refunding (Erdeco
Partnership Project), Variable Rate Demand Bonds,
4.125%, 11/01/13+ Aa-2 3,875,000
10,000,000 Stoughton Area School District of Dane and Rock Counties, Bond
Anticipation Notes, 3.750%, 12/02/96 MIG-1 10,002,751
- --------------------------------------------------------------------------------------------------------------
WYOMING - 1.4%
7,500,000 Uinta County, Pollution Control Refunding Revenue Bonds
(Chevron U.S.A. Inc. Project), Series 1993, Variable Rate
Demand Bonds 3.800%, 8/15/20+ P-1 7,500,000
- --------------------------------------------------------------------------------------------------------------
$518,600,000 Total Investments - 99.4% 518,868,755
=============-------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.6% 3,206,734
- --------------------------------------------------------------------------------------------------------------
Net Assets - 100% $ 522,075,489
==============================================================================================================
</TABLE>
* Ratings: 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
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.
8
<PAGE>
STATEMENT OF NET ASSETS TAX-EXEMPT MONEY MARKET FUND SEMIANNUAL REPORT
(Unaudited) AUGUST 31, 1996
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C>
ASSETS
Investments in short-term municipal securities,
at amortized cost (note 1) $518,868,755
Cash 2,073,961
Interest receivable 2,775,287
Other assets 23,870
------------
Total assets 523,741,873
------------
LIABILITIES
Accrued expenses:
Management fees (note 3) 173,287
Other 123,731
Dividends payable 1,369,366
------------
Total liabilities 1,666,384
------------
Net assets applicable to shares outstanding (note 4) $522,075,489
============
Shares outstanding 522,075,489
============
Net asset value, offering and redemption price per share
(net assets divided by shares outstanding) $ 1.00
============
- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
STATEMENT OF OPERATIONS
Six months ended August 31, 1996 (Unaudited)
<TABLE>
<CAPTION>
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C>
INVESTMENT INCOME
Tax-exempt interest income (note 1) $ 9,860,464
------------
Expenses:
Management fees (note 3) 1,111,948
Shareholders' servicing agent fees and expenses 10,509
Custodian's fees and expenses 60,852
Directors' fees and expenses (note 3) 3,365
Professional fees 11,194
Shareholders' reports--printing and mailing expenses 17,540
Federal and state registration fees 10,652
Other expenses 1,516
------------
Total expenses 1,227,576
------------
Net investment income 8,632,888
Net realized gain (loss) from investment transactions (5,851)
------------
Net increase in net assets from operations $ 8,627,037
============
- --------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
STATEMENT OF CHANGES TAX-EXEMPT MONEY MARKET FUND SEMIANNUAL REPORT
IN NET ASSETS AUGUST 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Six months Year ended
ended 8/31/96 2/29/96
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $ 8,632,888 $ 23,052,780
Net realized gain (loss) from investment transactions (5,851) 9,200
--------------- ---------------
Net increase in net assets from operations 8,627,037 23,061,980
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS (note 1) (8,627,037) (23,061,980)
--------------- ---------------
COMMON SHARE TRANSACTIONS
(at constant net asset value of $1 per share) (note 1)
Net proceeds from sale of shares 1,571,507,677 3,673,148,811
Net proceeds from shares issued to shareholders due
to reinvestment of distributions 3,187,820 7,738,987
--------------- ---------------
1,574,695,497 3,680,887,798
Cost of shares redeemed (1,662,673,415) (3,830,078,044)
--------------- ---------------
Net increase (decrease) in net assets derived from
Common share transactions (87,977,918 (149,190,246)
Net assets at the beginning of the period 610,053,407 759,243,653
--------------- ---------------
Net assets at the end of the period $ 522,075,489 $ 610,053,407
=============== ===============
- --------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
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
The Fund invests in 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 August 31, 1996, the dollar-weighted average life was 51 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
August 31, 1996, there were no such purchase commitments.
Interest income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts.
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 requirements of the Internal Revenue Code
applicable to regulated investment companies by distributing to shareholders all
of its net investment income, including any net realized capital gains from
investment transactions. 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 of the Fund.
12
<PAGE>
TAX-EXEMPT MONEY MARKET FUND SEMIANNUAL REPORT
AUGUST 31, 1996
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.
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 Fund is
authorized to invest in such financial instruments, and may do so in the future,
they did not make any such investments during the six months ended August 31,
1996.
2. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investment securities during the
six months ended August 31, 1996, aggregated $1,156,388,389 and $1,245,027,375,
respectively.
For federal income tax purposes, the cost of investments owned at August 31,
1996, was the same as the cost for financial reporting purposes.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
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 to the Adviser an annual management fee, payable monthly, as follows:
- --------------------------------------------------------------------------------
AVERAGE DAILY NET ASSET VALUE MANAGEMENT FEE
- --------------------------------------------------------------------------------
For the first $500,000,000 .400 of 1%
For the next $500,000,000 .375 of 1
For the next $1,000,000,000 .350 of 1
For net assets over $2,000,000,000 .325 of 1
- --------------------------------------------------------------------------------
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 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 August 31, 1996, the Fund had 5 billion shares of $.01 par value common stock
authorized. Net assets consisted of $522,075,489 paid-in capital.
14
<PAGE>
TAX-EXEMPT MONEY MARKET FUND SEMIANNUAL REPORT
AUGUST 31, 1996
5. INVESTMENT COMPOSITION
The Fund invests in municipal securities which include general obligation and
revenue bonds. At August 31, 1996, the revenue sources by municipal purpose,
expressed as a percent of total investments, were as follows:
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<S> <C>
Revenue Bonds:
Health Care Facilities 24%
Pollution Control Facilities 14
Housing Facilities 7
Educational Facilities 5
Electrical Utilities 5
Transportation 5
Water/Sewer Facilities 4
Lease Rental Facilities 2
Other 12
General Obligation Bonds 22
---
100%
===
- --------------------------------------------------------------------------------
</TABLE>
At August 31, 1996, 79% of the investments owned by the Fund have credit
enhancements (letters of credit, guarantees or insurance) issued by a third
party, domestic or foreign banks or other institutions.
For additional information regarding each investment security, refer to the
Portfolio of Investments.
15
<PAGE>
FINANCIAL HIGHLIGHTS
(Unaudited)
NUVEEN TAX-EXEMPT MONEY MARKET FUND, INC.
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD IS AS FOLLOWS:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations Less distributions
-------------------------------------------------------------------------------
Net
Net asset realized and Dividends Distributions
value Net unrealized gain from net from
beginning investment (loss) from investment capital
of period income investments income gains
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Six months ended
8/31/96 $1.000 $.016 $-- $(.016) $--
Year ended
2/29/96 1.000 .034 -- (.034) --
Year ended 2/28,
1995 1.000 .027 -- (.027) --
1994 1.000 .020 -- (.020) --
1993 1.000 .026 -- (.026) --
10/1/91 to
2/29/92 1.000 .016 -- (.016) --
Year ended 9/30,
1991 1.000 .049 -- (.049) --
1990 1.000 .058 -- (.058) --
1989 1.000 .060 -- (.060) --
1988 1.000 .049 -- (.049) --
1987 1.000 .041 -- (.041) --
1986 1.000 .048 -- (.048) --
1985 1.000 .052 -- (.052) --
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
*Annualized.
16
<PAGE>
NUVEEN TAX-EXEMPT MONEY MARKET FUND SEMIANNUAL REPORT
AUGUST 31, 1996
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
Ratios/Supplemental data
-------------------------------------------------------------------
Net Ratio of
asset Total Ratio of net investment
value return on Net assets expenses income
end of net asset end of period to average to average
period value (in thousands) net assets net assets
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$1.000 1.56% $522,075 .44%* 3.08%*
1.000 3.42 610,053 .44 3.43
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>
17
<PAGE>
Your
investment
partner
[PHOTO] Since 1898, John Nuveen & Co. Incorporated has
worked to bring together the various
participants in the municipal bond industry
and build strong partnerships that benefit all
For nearly 100 years, concerned. Investors, financial advisers,
Nuveen has earned its municipal officials, investment bankers--
reputation as a tax-free income Nuveen believes that forgoing relationships
specialist by focusing on within these groups based on trust and value
municipal bonds. is the key to successful investing.
As the oldest and largest municipal bond
specialist in the United States, Nuveen's
investment bankers work with issuers to
understand and meet their needs in
structuring and selling their bond issues.
Nuveen also works closely with financial
advisers around the country, including
brokerage firms, banks, insurance companies,
and independent financial planners, to bring
the benefits of tax-free investing to you.
These advisers are experts at identifying your
needs and recommending the best solutions for
your situation. Together we make a powerful
team, helping you create a successful
investment plan that meets your needs today
and in the future.
[LOGO]
John Nuveen & Co. Incorporated
333 West Wacker Drive
Chicago, Illinois 60606-1286
