GENERAL MONEY MARKET FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for General Money Market Fund,
Inc. Kindly take note that the fiscal year of the Fund has been changed to
conform with the reporting periods for other money market funds in the
General Family of Funds. Accordingly, this annual report covers the period
from January 31, 1997, the date of the last annual report, through the new
fiscal year-end date, November 30, 1997.
For that period of time, your Fund's performance is as shown in the
following chart:
ANNUALIZED
ANNUALIZED YIELD EFFECTIVE YIELD*
______________ _____________
Class A Shares......... 4.89% 5.00%
Class B Shares......... 4.75% 4.85%
The Economy
Almost everything went right for the U.S. economy over the reporting
period. In its seventh year of expansion, the economy showed no sign of an
upsurge in inflation resulting from tightening labor markets. With the
unemployment rate at its lowest level in almost a decade, investors had been
concerned that wage gains might result in higher levels of inflation and
cause the Federal Reserve Board (the "Fed") to again raise interest rates.
Given the longevity of our economic recovery, the Fed's monetary policymakers
apparently were hoping that a cyclical easing in the economic growth rate
would help dampen any incipient inflationary pressure. Recent turmoil in the
financial markets of Asia and Latin America has raised prospects for a
slowdown in U.S. exports as those nations shore up their financial systems.
If this were to occur, the diminished demand for U.S. goods overseas could be
a drag on domestic economic growth. What is all but certain is that the Fed
is reluctant to further unsettle world financial markets by raising interest
rates over the near term.
Indicators of future economic conditions showed high levels of consumer
optimism and pointed toward continued growth. Consumers' spirits have been
lifted by an unemployment rate at a quarter-century low (4.7% at the end of
the reporting period), and core inflation, which excludes food and energy
price changes, at the 2% level. The Conference Board, a business-sponsored
research group, recently reported that its Consumer Confidence Index hit a
new high for this economic expansion. Since consumers account for two thirds
of all economic activity, their confidence in the economy is an important
indicator of future conditions. Another important index of future economic
conditions, the Index of Leading Economic Indicators (also a Conference Board
index), implied continued growth. Government reports of personal income and
consumer spending showed healthy rates of increase as well.
The production side of the economy continued its robust advance.
Industrial output rose consistently, and while the factory utilization rate
(a potential harbinger of production bottlenecks and price pressures) also
increased, there was little evidence of producer-generated inflation.
Additional good news regarding inflation came from the report that the
productivity of U.S. workers rose at its fastest pace in five years during
the third quarter of 1997. This increase in worker efficiency helped push down
unit labor costs and eased concerns that labor costs, despite the tight
labor market, would lead to higher inflation.
The interplay between worker productivity and worker wage increases does
much in determining the future course of inflation. We continue to monitor
that closely, along with developments in the international financial arena.
The recent international turbulence underscored the close economic
relationships that exist among all countries, particularly in this age of
multinational companies and pervasive global capitalism.
Money Market Overview
During the past 12 months, money market rates have stayed within a
general trading range, fluctuating recently in response to pressure in the
overseas markets and a downturn in the U.S. stock market. An inverse
relationship has emerged between money market instruments and equities. The
money market has provided an ideal liquidity haven for many investors.
The last interest rate move by the Federal Reserve occurred in March
1997, when the Fed raised rates by a quarter point. For a significant period
afterwards, the economy was moving at a moderate growth pace with subdued
inflation. Later, concerns emerged regarding tight labor markets which
threatened to adversely affect the inflation outlook. Recent evidence of
faster growth in several sectors of the economy drew a stronger case for
another Fed move. If it were not for the recent difficulties occurring in
the overseas market and uncertainty over the effects on our economy, a policy
move would probably have been made. At its December meeting, the Fed voted to
keep the Fed Funds rate unchanged.
Portfolio Focus
Against this backdrop, we have kept the average maturity of the portfolio
slightly longer than the industry average. The intention has been to improve
yields without assuming undue market risks. We believe that this strategy
has been beneficial to the Fund. The currently volatile environment requires
flexibility on our part as managers. Of course, we will make adjustments to
the portfolio strategy as required by the dynamics of the market.
Sincerely,
(Patricia A. Larkin SIGNATURE LOGO)
Patricia A. Larkin
Senior Portfolio Manager
December 18, 1997
New York, N.Y.
* Annualized effective yield takes into account the effect of compounding and
is based upon dividends declared daily and reinvested monthly.
<TABLE>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS NOVEMBER 30, 1997
Principal
Negotiable Bank Certificates of Deposit-27.1% Amount Value
______________ ______________
<S> <C> <C>
ABN-AMRO Bank N.V. (Yankee)
5.59%-5.83%, 12/23/97-6/19/98............................................. $ 45,500,000 $ 45,503,388
Bank of Tokyo-Mitsubishi Ltd. (Yankee)
5.70%-6.01%, 3/16/98-4/14/98.............................................. 65,000,000 65,000,000
Berliner Handels-und Frankforter Bank (Yankee)
5.69%, 7/13/98 (a)........................................................ 50,000,000 49,995,544
Dai-Ichi Kangyo Bank Ltd. (Yankee
5.88%, 12/16/97........................................................... 7,000,000 7,000,167
Fuji Bank Ltd. (Yankee)
5.76%, 1/2/98............................................................. 25,000,000 25,000,000
Industrial Bank of Japan Ltd. (Yankee)
5.87%, 1/5/98............................................................. 44,000,000 44,000,000
International Nederlanden Bank (London)
6.06%, 6/5/98............................................................. 43,000,000 43,006,875
Landesbank Hessen-Thueringen Girozentrale (Yankee)
6.25%, 4/7/98............................................................. 50,000,000 49,980,095
Lloyds Bank PLC (London)
5.93%, 10/27/98........................................................... 25,000,000 25,004,323
Sanwa Bank Ltd. (London)
5.86%, 12/18/97........................................................... 20,000,000 20,000,092
Societe Generale (Yankee)
5.71%-5.93%, 4/20/98-10/27/98............................................. 85,000,000 85,024,408
Sumitomo Bank Ltd. (Yankee)
5.73%, 1/5/98............................................................. 50,000,000 50,000,000
SwedBank (Yankee)
5.70%, 3/23/98-7/28/98.................................................... 70,000,000 70,000,000
______________
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $579,514,892)....................................................... $ 579,514,892
==============
Commercial Paper-30.9%
ABN-AMRO North America Finance Inc.
5.71%, 4/16/98............................................................ $ 30,000,000 $ 29,371,000
Associates Corp. of North America
5.58%, 12/1/97............................................................ 30,000,000 30,000,000
FINOVA Capital Corp.
5.82%-5.84%, 2/23/98-4/24/98.............................................. 80,000,000 78,458,900
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1997
Principal
Commercial Paper (continued) Amount Value
______________ ______________
General Electric Capital Corp.
5.75%-5.85%, 6/9/98-6/12/98............................................... 75,000,000 72,783,729
General Motors Acceptance Corp.
5.67%-5.74%, 3/27/98-5/11/98.............................................. 97,000,000 94,900,291
Lehman Brothers Holdings Inc.
5.82%-6.06%, 12/19/97-5/18/98............................................. $ 100,000,000 $ 97,834,280
Nordbanken N.A. Inc.
5.70%-5.72%, 1/29/98-2/24/98.............................................. 37,200,000 36,759,846
Prudential Funding Corp.
5.58%, 12/1/97............................................................ 50,000,000 50,000,000
Salomon Inc.
5.84%-5.92%, 1/6/98-2/2/98................................................ 70,000,000 69,414,339
Santander Finance (DE) Inc.
5.64%, 1/30/98............................................................ 25,000,000 24,771,250
SwedBank Inc.
5.63%, 12/29/97........................................................... 25,000,000 24,893,056
UBS Finance (DE) Inc.
5.76%, 12/1/97............................................................ 50,000,000 50,000,000
______________
TOTAL COMMERCIAL PAPER
(cost $659,186,691)....................................................... $ 659,186,691
==============
Bank Notes-6.6%
Bankers Trust Co.
5.74%, 4/3/98 (a)......................................................... $ 50,000,000 $ 49,993,427
Bayerische Landesbank Girozentrale
5.56%, 8/14/98............................................................ 25,000,000 25,043,106
Comerica Bank
5.71%, 4/17/98 (a)........................................................ 25,000,000 24,995,471
First National Bank of Boston
5.72%, 4/14/98 (a)........................................................ 20,000,000 20,000,000
Huntington National Bank
5.75%, 6/23/98............................................................ 20,000,000 19,999,847
______________
TOTAL BANK NOTES
(cost $140,031,851)....................................................... $ 140,031,851
==============
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1997
Principal
Corporate Notes-24.3% Amount Value
______________ ______________
<S> <C> <C>
Bear, Stearns Companies Inc.
5.83%, 1/13/98............................................................ $ 25,000,000 $ 25,000,000
CTN Trust Series 1
5.62%, 9/2/98 (a,b,c)..................................................... 50,000,000 50,130,835
Heller Financial Inc.
5.70%-5.80%, 4/7/98-11/6/98 (a)........................................... 100,000,000 100,000,000
Key Bank N.A. Cleveland
5.67%, 2/18/98 (a)........................................................ 30,000,000 29,996,860
Merrill Lynch & Co. Inc.
5.67%-5.72%, 4/15/98-10/30/98 (a)......................................... $ 75,000,000 $ 75,000,000
Morgan Stanley Group Inc.
5.82%, 5/18/98 (a)........................................................ 15,000,000 15,000,000
Old Kent Bank & Trust Co.
5.68%, 10/14/98 (a)....................................................... 75,000,000 74,968,083
PHH Corp.
5.68%-5.69%, 6/24/98-8/4/98 (a)........................................... 65,000,000 65,000,000
PNC Bank N.A.
5.68%-5.69%, 2/18/98-4/24/98 (a).......................................... 40,000,000 39,994,891
Paine Webber Group Inc.
5.80%, 1/7/98 (a)......................................................... 20,000,000 20,000,000
Salomon Inc.
5.74%, 5/15/98............................................................ 2,900,000 2,903,127
5.85%, 7/20/98 (a)........................................................ 20,000,000 20,000,000
______________
TOTAL CORPORATE NOTES
(cost $517,993,796)....................................................... $ 517,993,796
==============
Promissory Notes-4.4%
Goldman Sachs Group L.P.
5.85%-5.92%, 1/5/98-6/12/98 (b,c)
(cost $95,000,000)........................................................ $ 95,000,000 $ 95,000,000
==============
U.S. Government Agencies-5.9%
Federal Home Loan Mortgage Corp., Floating Rate Notes
5.75%, 6/30/98 (a)........................................................ $ 10,700,000 $ 10,707,047
Federal National Mortgage Association, Floating Rate Notes
5.58%-5.61%, 1/21/98-12/1/99 (a).......................................... 115,000,000 115,051,392
______________
TOTAL U.S. GOVERNMENT AGENCIES
(cost $125,758,439)....................................................... $ 125,758,439
==============
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1997
Time Deposits-2.1%
______________________________________________________________________________
Berliner Handels-und Frankforter Bank AG (Cayman)
5.63%, 12/1/97
(cost $44,226,000)........................................................ $ 44,226,000 $ 44,226,000
==============
TOTAL INVESTMENTS
(cost $2,161,711,669)............................................ 101.3% $2,161,711,669
====== ==============
LIABILITIES, LESS CASH AND RECEIVABLES............................. (1.3%) $ (27,266,539)
====== ==============
NET ASSETS......................................................... 100.0% $2,134,445,130
====== ==============
Notes to Statement of Investments:
(a) Variable interest rate subject to periodic change.
(b) These notes were acquired for investment, not with intent to
distribute or sell.
(c) Securities restricted as to public resale. These securities were
acquired from 7/7/97 to 9/29/97 at a cost of par value. At November 30,
1997, the aggregate value of these securities is $145,130,835 milllion,
representing approximately 6.8% of net assets and are valued at amortized
cost.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES NOVEMBER 30, 1997
Cost Value
______________ ______________
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments... $2,161,711,669 $2,161,711,669
Cash....................................... 5,662,204
Interest receivable........................ 18,235,126
Prepaid expenses........................... 193,542
______________
2,185,802,541
______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates 767,317
Due to Distributor......................... 176,817
Payable for investment securities purchased 50,000,000
Accrued expenses........................... 413,277
______________
51,357,411
______________
NET ASSETS.................................................................. $2,134,445,130
==============
REPRESENTED BY: Paid-in capital............................ $2,134,550,232
Accumulated net realized gain (loss) on investments (105,102)
______________
NET ASSETS.................................................................. $2,134,445,130
=============
NET ASSET VALUE PER SHARE
_____________________________
Class A Class B
______________ ______________
Net Assets.................................................................. $ 903,312,742 $1,231,132,388
Shares Outstanding.......................................................... 903,370,939 1,231,179,293
NET ASSET VALUE PER SHARE................................................... $1.00 $1.00
===== =====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS
Ten Months Ended Year Ended
November 30, 1997* January 31, 1997
____________________ __________________
<S> <C> <C>
INVESTMENT INCOME
INCOME Interest Income...................... $ 81,673,959 $ 58,723,751
______________ ______________
EXPENSES: Management fee-Note 2(a)............. $ 7,091,891 $ 5,285,812
Shareholder servicing costs-Note 2(c) 2,933,147 1,794,756
Distribution fees-Note 2(b).......... 2,836,756 2,114,325
Registration fees.................... 317,205 183,014
Custodian fees....................... 145,011 132,401
Professional fees.................... 55,134 56,923
Prospectus and shareholders' reports. 39,795 43,285
Directors' fees and expenses-Note 2(d) 24,064 36,330
Miscellaneous........................ 107,099 39,567
______________ ______________
Total Expenses 13,550,082 9,686,413
Less-reduction in shareholder servicing costs
due to undertaking-Note 2(c)..... (401,679) (243,136)
______________ ______________
Net Expenses 13,148,403 9,443,277
______________ ______________
INVESTMENT INCOME-NET............................................. 68,525,556 49,280,474
NET REALIZED GAIN (LOSS) ON INVESTMENTS-Note 1(b)................. (78,341) (8,067)
______________ ______________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. $ 68,447,215 $ 49,272,407
============== ==============
* The Fund has changed its fiscal year end from January 31 to November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
Ten Months Ended Year Ended Year Ended
November 30, 1997* January 31, 1997 January 31, 1996
__________________ ________________ ________________
<S> <C> <C> <C>
OPERATIONS
Investment income-net................................ $ 68,525,556 $ 49,280,474 $ 33,464,685
Net realized gain (loss) on investments.............. (78,341) (8,067) (3,057)
_______________ ______________ ______________
Net Increase (Decrease) in Net Assets
Resulting from Operations...................... 68,447,215 49,272,407 33,461,628
_______________ ______________ ______________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Class A shares..................................... (32,426,980) (34,241,653) (32,893,579)
Class B shares..................................... (36,098,576) (15,038,821) (571,106)
_______________ ______________ ______________
Total Dividends.................................. (68,525,556) (49,280,474) (33,464,685)
_______________ ______________ ______________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A shares..................................... 5,481,588,637 6,572,669,153 4,736,674,991
Class B shares..................................... 3,353,368,498 1,019,289,506 98,889,385
Dividends reinvested:
Class A shares..................................... 31,506,536 32,898,001 32,106,715
Class B shares..................................... 35,189,462 14,154,018 79,652
Cost of shares redeemed:
Class A shares..................................... (5,373,865,859) (6,496,025,709) (4,686,313,457)
Class B shares..................................... (2,526,588,101) (714,679,626) (48,523,501)
_______________ ______________ ______________
Increase (Decrease) in Net Assets
from Capital Stock Transactions................ 1,001,199,173 428,305,343 132,913,785
_______________ ______________ ______________
Total Increase (Decrease) in Net Assets...... 1,001,120,832 428,297,276 132,910,728
NET ASSETS:
Beginning of Period.................................. 1,133,324,298 705,027,022 572,116,294
_______________ ______________ ______________
End of Period........................................ $2,134,445,130 $1,133,324,298 $ 705,027,022
============== ============== ==============
___________________________
*The Fund has changed its fiscal year end from January 31 to November 30.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL 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.
Class A Shares
_____________________________________________________________________
Ten Months Ended Year Ended January 31,
______________________________________________
PER SHARE DATA: November 30, 1997(1) 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................. .041 .047 .053 .037 .025 .032
_______ ______ ______ ______ ______ _____
Distributions:
Dividends from investment income-net.. (.041) (.047) (.053) (.037) (.025) (.032)
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN................... 4.99%(2) 4.81% 5.42% 3.75% 2.56% 3.26%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets .88%(2) .84% .86% .94% .94% .95%
Ratio of net investment income
to average net assets............... 4.89%(2) 4.71% 5.28% 3.68% 2.53% 3.22%
Decrease reflected in above expense ratios
due to undertakings by the Manager.. - - .01% .04% .02% -
Net Assets, end of period (000's Omitted).... $903,313 $764,119 $654,581 $572,116 $616,072 $688,785
______________________________
(1) The Fund has changed its fiscal year end from January 31 to November 30.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net
assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Class B Shares
_______________________________________
Ten Months Ended
November 30, Year Ended January 31,
________________________
PER SHARE DATA: 1997(1) 1997 1996(2)
____________ _____ ______
<S> <C> <C> <C>
Net asset value, beginning of period....................... $ 1.00 $ 1.00 $ 1.00
______ ______ ______
Investment Operations:
Investment income-net...................................... .039 .046 .043
______ ______ ______
Distributions:
Dividends from investment income-net....................... (.039) (.046) (.043)
______ ______ ______
Net asset value, end of period............................. $ 1.00 $ 1.00 $ 1.00
====== ====== ======
TOTAL INVESTMENT RETURN........................................ 4.83%(3) 4.65% 5.18%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................... 1.00%(3) 1.00% 1.00%(3)
Ratio of net investment income
to average net assets.................................... 4.78%(3) 4.56% 5.00%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager....................... .05%(3) .07% .07%(3)
Net Assets, end of period (000's Omitted).................. $1,231,132 $369,205 $50,446
(1)The Fund has changed its fiscal year end from January 31 to November 30.
(2)From March 31, 1995 (commencement of initial offering) to January 31, 1996.
(3)Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
GENERAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
General 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 provide investors
with as high a level of current income as is consistent with the preservation
of capital. 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. (the "Distributor") is the distributor
of the Fund's shares, which are sold to the public without a sales load. The
Fund is authorized to issue 25 billion shares of $.001 par value Common
Stock. The Fund currently offers two classes of shares: Class A (15 billion
shares authorized) and Class B (10 billion shares authorized). Class A shares
and Class B shares are identical except for the services offered to and the
expenses borne by each class and certain voting rights. Class A shares are
subject to a Service Plan adopted pursuant to Rule 12b-1 under the Act, Class
B shares are subject to a Distribution Plan adopted pursuant to Rule 12b-1
under the Act and, in addition, Class B shares are charged directly for
sub-accounting services provided by Service Agents (a securities dealer,
financial institution or other industry professional) at an annual rate of
.05% of the value of the average daily net assets of Class B shares.
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.
The Fund has changed its fiscal year end from January 31 to November 30.
(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. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Interest
income is recognized on the accrual basis. Cost of investments represents
amortized cost.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Fund's Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject to
repurchase agreements are deposited with the Fund's custodian and, pursuant
to the terms of the repurchase agreement, must have an aggregate market value
greater than or equal to the repurchase price plus accrued interest at all
times. If the value of the underlying securities falls below the value of the
repurchase price plus accrued interest, the Fund will require the seller to
deposit additional collateral by the next business day. If the request for
additional collateral is not met, or the seller defaults on its repurchase
obligation, the Fund maintains the right to sell the underlying securities at
market value and may claim any resulting loss against the seller.
(c) Dividends to shareholders: It is the policy of the Fund to declare
dividends from investment income-net on each business day; such dividends are
paid monthly. Dividends from net realized capital gain, if any, are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, it is the policy of the Fund not to distribute such
gain.
(d) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the applicable
provisions of the Internal
GENERAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Revenue Code, and to make distributions of taxable income sufficient to
relieve it from substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $105,000
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, $12,000 of the carryover expires in fiscal 2001, $15,000 expires in
fiscal 2004 and $78,000 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 ("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. The Agreement
provides that if in any full fiscal year the aggregate expenses of the Fund,
exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses, exceed 1 1\2% of the value of the Fund's average net assets, the
Fund may deduct from payments to be made to the Manager, or the Manager will
bear such excess expense. During the periods ended January 31, 1997 and
November 30, 1997, there were no expense reimbursements pursuant to the
Agreement.
(b) Under the Service Plan with respect to Class A shares (the "Plan"),
adopted pursuant to Rule 12b-1 under the Act, the Fund directly bears the
cost of preparing, printing and distributing prospectuses and statements of
additional information and implementing and operating the Plan. In addition,
the Fund reimburses (a) the Distributor for payments made for distributing
Class A shares and servicing shareholder accounts ("Servicing") and (b) the
Manager, Dreyfus Service Corporation, a wholly-owned subsidiary of the
Manager, and their affiliate (collectively, "Dreyfus") for payments made for
Servicing, at an aggregate annual rate of up to .20 of 1% of the value of the
average daily net assets of Class A. Both the Distributor and Dreyfus may pay
Service Agents a fee in respect of Class A shares owned by shareholders with
whom the Service Agent has a Servicing relationship or for whom the Service
Agent is the dealer or holder of record. The schedule of such fees and the
basis upon which such fees will be paid shall be determined from time to time
by the Fund's Board of Directors. If a holder of Class A shares ceases to be
a client of a Service Agent, but continues to hold Class A shares, Dreyfus
will be permitted to act as a Service Agent in respect of such Fund
shareholders and receive payments under the Service Plan for Servicing. The
fees payable for Servicing are payable without regard to actual expenses
incurred. During the periods ended January 31, 1997 and November 30, 1997,
the Fund was charged $1,454,173 and $1,325,410, respectively, pursuant to the
Plan.
Under the Distribution Plan with respect to Class B shares ("Class B
Distribution Plan"), adopted pursuant to Rule 12b-1 under the Act, the Fund
directly bears the costs of preparing, printing and distributing prospectuses
and statements of additional information and of implementing and operating
the Class B Distribution Plan. In addition, the Fund reimburses the Distributor
for payments made to third parties for distributing Class B shares at an
aggregate annual rate of up to .20% of 1% of the value of the average daily
net assets of Class B. During the periods ended January 31, 1997 and November
30, 1997, the Fund was charged $660,152 and $1,511,346, respectively, pursuant
to the Class B Distribution Plan.
(c) Under the Shareholder Services Plan with respect to Class A ("Class A
Shareholder Services Plan"), the Fund reimburses Dreyfus Service Corporation,
an amount not to exceed an annual rate of .25 of 1% of the value of the
Fund's average daily net assets of Class A 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 periods ended January 31,
1997 and November 30, 1997, the Fund was charged $363,543 and $331,353,
respectively, pursuant to the Class A Shareholder Services Plan.
GENERAL MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Under the Shareholder Services Plan with respect to Class B ("Class B
Shareholder Services Plan"), the Fund pays the Distributor for the provision
of certain services to the holders of Class B shares a fee at an annual rate
of .25 of 1% of the value of the average daily net assets of Class B. 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. The Distributor may make payments to
Service Agents in respect of these services. The Distributor determines the
amounts to be paid to Service Agents.
The Manager has undertaken through January 31, 1998, that if the
aggregate expenses of Class B of the Fund, exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses, exceed 1% of the value of
the average daily net assets of Class B, the Manager will reimburse the
expenses of the Fund under the Class B Shareholder Services Plan to the
extent of any excess expense and up to the full fee payable under the Class B
Shareholder Services Plan. During the periods ended January 31, 1997 and
November 30, 1997, the Fund was charged $825,189 and $1,889,183,
respectively, pursuant to the Class B Shareholder Services Plan, of which
$243,136 and $401,679, respectively, was reimbursed by the Manager.
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
periods ended January 31, 1997 and November 30, 1997, the Fund was charged
$213,208 and $156,866, respectively, pursuant to the transfer agency
agreement.
(d) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $2,500 and an attendance fee of $500
per meeting. The Chairman of the Board receives an additional 25% of such
compensation.
GENERAL MONEY MARKET FUND, INC.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Shareholders and Board of Directors
General Money Market Fund, Inc.
We have audited the accompanying statement of assets and liabilities of
General Money Market Fund, Inc., including the statement of investments, as
of November 30, 1997, and the related statements of operations for each of
the two years in the period then ended, the statements of changes in net
assets for each of the three years in the period then ended and financial
highlights for each of the years indicated therein. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements and the financial highlights. Our procedures
included confirmation of securities owned as of November 30, 1997 by correspon
dence with the custodian and brokers. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of General Money Market Fund, Inc. at November 30, 1997, and the
results of its operations for each of the two years in the period then ended,
the changes in its net assets for each of the three years in the period then
ended and the financial highlights for each of the indicated years, in
conformity with generally accepted accounting principles.
[ERNST & YOUNG LLP signature logo]
New York, New York
January 12, 1998
Registration Mark
[Dreyfus lion "d" logo]
GENERAL 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. 196/696AR9711
General
Money Market
Fund, Inc.
Annual Report
November 30, 1997
Registration Mark
[Dreyfus logo]
