YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
GENERAL MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for General Money Market Fund, Inc.
for the 12-month period ended November 30, 1998, as shown in the following
table:
YIELD EFFECTIVE YIELD*
_______ _____________
Class A Shares . .. . . . . . . 4.88% 4.98%
Class B Shares . .. . . . . . . 4.68% 4.78%
ECONOMIC REVIEW
During 1998, the main regions of the world had very different economic
fundamentals. The U.S. entered the year with a strong economy near full
employment, with unemployment only slightly above 4%. The tight labor market led
the Federal Reserve Board to contemplate a rise in interest rates early in the
year. The U.S. economy cooled enough over the months that the Fed decided to
stand pat. Evidence of economic cooling continued to accumulate and worries
about the world economy intensified. Financial stresses pushed the Fed to ease
beginning in September. After many years of subpar economic growth, continental
Europe moved into a sustained economic expansion. The overall European economy
benefited as interest rates in peripheral countries such as Spain and Italy
fell, approaching the lower level established by Germany, on the eve of currency
unification. Unlike the U.S., Europe has substantial excess capacity of
productive plants and labor. In Asia, weak economies were pervasive as a result
of the Asian financial crisis. The Latin American economies weakened as the
financial stresses spread throughout that region.
A main influence on the U.S. economy this year was the foreign financial
crisis and cooling of the world economy. The positive effects hit first. Actual
inflation and expected inflation dropped, causing a decline in long-term
Treasury bond yields and mortgage rates. This caused a boom in housing. The drop
in inflation helped the consumer sector as more of the growth in consumer income
was left over after inflation to buy goods and services. Consumers benefited
from a combination of good growth in real income, a strong labor market and past
increases in the prices of assets they owned.
The negative effect of Asian weakness was felt in the industrial sector more
than the consumer sector. Corporate profits weakened, especially in sectors
affected by the Asian crisis such as world-traded commodities (oil, metals and
paper) and exports. One result of the industrial weakness was to cool off a U.S.
economy that had been growing rapidly.
The major change in the economic outlook over recent months has been a
downward shift in expectations for world economic growth. A credit crunch
developed in emerging countries and former communist countries, sharply reducing
the economic outlook for Asia and Latin America as well as for
commodity-exporting countries throughout the world. The effect on Europe and the
U.S. has been to lower expectations of profit growth and drive down bond yields.
Monetary policy has begun to ease in Europe as well as the U.S.
Evidence of a weaker world economy accumulated as the financial stresses
continued. A worsened financial crisis occurred between the Russian default in
mid-August and the fallout from the Long-Term Capital Management hedge fund
crisis through early October. However, proactive steps were taken to stabilize
the Japanese banks, design a support package for Brazil and ease monetary
policy. There appears to be a shift in the priorities of key policymakers from
fighting potential inflation to restimulating future world economic growth.
MARKET ENVIRONMENT/PORTFOLIO FOCUS
The economic forces described above drove down interest rates in late summer
and early fall. While there has been a recent modest increase, rates have now
broken out of the narrow band that prevailed earlier in the year.
The flight to safety that was prompted by economic worries around the globe
generated very high demand for U.S. Treasury securities in the longer
maturities. This drove down yields but money market rates remained strong,
causing an inverted yield curve for a while.
In recent weeks, investors appeared to become more confident with the economic
outlook. The result was an unwinding of large portions of the positions taken as
a result of the search for investment safety. Consequently, the yield curve,
which measures the relationship between long- and short-term securities,
returned to a more positive or more normal pattern.
At present, prices and rates in the money market are more reflective of
underlying economic forces than of investor fears of global financial turmoil.
This of course, is constructive for investors in short-term money market
instruments.
The fact that the Federal Reserve Open Market Committee lowered interest rates
three times since late September has been a strong confidence-building factor in
the markets. Currently, the market expects the Fed to continue its bias toward
accommodation as economic conditions dictate.
Taking all this into account, we continue to maintain a somewhat longer
average maturity than the average for other funds. This is intended to position
the Fund in the event of further downward moves in market yields.
Sincerely,
[Patricia A. Larkin signature]
Patricia A. Larkin
Senior Portfolio Manager
December 18, 1998
New York, N.Y.
* 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, 1998
Principal
Negotiable Bank Certificates of Deposit--24.2% Amount Value
- ------------------------------------------------------- _____________ _______________
<S> <C> <C>
Bankers Trust Co.
6.00%, 12/10/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000,000 $ 50,000,118
Bank of Nova Scotia (Yankee)
5.12%, 4/6/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 30,001,023
Credit Agricole Indosuez S.A. (Yankee)
4.87%-5.12%, 4/16/99-5/26/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,000,000 49,001,679
Creditanstalt-Bankverein (Yankee)
4.86%-5.77%, 4/16/99-5/26/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000,000 74,981,418
Credit Suisse First Boston (Yankee)
4.86%, 4/14/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 50,000,000
Deutsche Bank AG (Yankee)
5.61%-5.70%, 2/26/99-3/22/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,993,706
Generale Bank (Yankee)
5.00%, 11/17/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,986,081
Istituto Bancario San Paolo Di Torino
5.74%-5.75%, 7/20/99-7/28/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000,000 99,965,360
Norddeutsche Landesbank Girozentrale (Yankee)
5.12%, 4/6/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000,000 30,044,487
Societe Generale (Yankee)
5.77%-5.85%, 4/6/99-5/28/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000,000 59,984,903
Skandinaviska Enskilda Banken (Yankee)
4.88%, 6/4/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000,000 100,000,000
SwedBank (Yankee)
5.29%-5.73%, 3/26/99-7/12/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000,000 55,021,124
Swiss Bank Corp. (Yankee)
5.74%, 3/5/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,995,558
Westdeutsche Landesbank Girozentrale (Yankee)
5.04%, 4/13/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 50,000,000
_______________
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $788,975,457) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 788,975,457
===============
Commercial Paper--39.0%
- -------------------------------------------------------
ABN-AMRO North America Finance Inc.
5.00%, 4/23/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000,000 $ 49,026,806
Associates Corp. of North America
5.45%, 12/1/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000
BT Alex Brown Inc.
5.73%, 12/24/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,929,722
Bear Stearns Companies Inc.
5.66%, 12/1/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000
Canadian Imperial Holdings Inc.
4.89%, 4/26/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,032,344
Daimler-Benz North America Corp.
4.90%-5.04%, 3/12/99-4/28/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74,250,000 73,074,249
GENERAL MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1998
Principal
Commercial Paper (continued) Amount Value
- ------------------------------------------------------- _____________ _______________
Den Danske Corp. Inc.
5.12%, 4/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,000,000 $ 24,580,281
Den Norske Bank ASA
5.12%, 5/12/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 48,877,250
FINOVA Capital Corp.
5.70%-5.74%, 2/19/99-2/25/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,000,000 113,562,490
Generale Bank Inc.
5.65%-5.66%, 12/2/98-12/7/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000,000 99,946,528
General Electric Capital Corp.
5.37%-5.66%, 3/1/99-6/4/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000,000 147,415,750
HSBC Americas Inc.
5.12%, 9/2/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000,000 43,312,160
Heller Financial Inc.
5.40%-5.76%, 12/16/98-4/5/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,000,000 84,401,667
Hertz Corp.
5.64%, 12/11/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,923,194
Lehman Brothers Holdings Inc.
4.91%-5.78%, 2/1/99-2/8/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,809,178
Merrill Lynch & Co. Inc.
5.66%-5.71%, 1/19/99-3/26/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,000,000 93,992,009
Morgan (J.P.) Co. Inc.
5.63%, 12/1/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 50,000,000
Spintab AB
5.09%-5.70%, 12/15/98-6/30/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145,000,000 143,629,782
SwedBank Inc.
5.10%-5.54%, 2/5/99-5/17/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000,000 103,323,821
_______________
TOTAL COMMERCIAL PAPER
(cost $1,273,837,231) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,273,837,231
==============
Bank Notes--13.6%
- -------------------------------------------------------
Abbey National PLC
5.37%, 6/1/99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,000,000 $ 35,032,333
BankBoston, N.A.
4.96%, 12/10/98 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000
First Union National Bank
4.83%-5.21%, 4/30/99-9/24/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . 150,000,000 150,004,014
NationsBank N.A.
4.87%, 8/3/99-8/6/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000,000 99,973,662
PNC Bank N.A.
4.85%-4.87%, 4/28/99-5/21/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . 120,000,000 119,973,873
Societe Generale
4.88%, 2/23/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,998,205
_______________
TOTAL BANK NOTES
(cost $444,982,087) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 444,982,087
===============
GENERAL MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1998
Principal
Corporate Notes--15.2% Amount Value
- ------------------------------------------------------- _____________ _______________
BankBoston, N.A.
4.91%, 1/11/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000,000 $ 9,999,568
Bankers Trust Co.
4.87%, 4/9/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000,000 64,991,126
CIT Group Holdings Inc.
4.88%-4.97%, 9/29/99-11/2/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000,000 74,978,576
Heller Financial Inc.
5.00%-5.05%, 4/13/99-9/8/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 40,000,000
IBM Credit Corp.
4.85%, 6/18/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,984,034
Key Bank N.A.
4.86%, 4/16/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000,000 44,990,107
Lehman Brothers Holdings Inc.
5.05%, 1/13/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000
Merrill Lynch & Co. Inc.
4.92%, 10/13/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 25,000,000
NationsBank N.A.
4.86%, 4/27/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,994,160
Paine Webber Group Inc.
4.95%-5.52%, 1/4/99-7/29/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000,000 65,016,625
Salomon Smith Barney Holdings Inc.
5.00%, 10/28/99 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 50,000,000
_______________
TOTAL CORPORATE NOTES
(cost $494,954,196) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 494,954,196
===============
Promissory Notes--4.8%
- -------------------------------------------------------
Goldman Sachs Group L.P.
4.95%-5.25%, 2/8/99-8/6/99 (b,c)
(cost $155,000,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 155,000,000 $ 155,000,000
===============
U.S. Government Agencies--1.5%
- -------------------------------------------------------
Federal National Mortgage Association, Floating Rate Notes
4.83%, 12/1/99 (a)
(cost $50,000,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000,000 $ 50,000,000
================
Repurchase Agreements--.3%
- -------------------------------------------------------
Goldman Sachs Group L.P.
dated 11/30/98, due 12/1/98 in the amount of $11,001,589
(fully collateralized by $11,075,000 U.S. Treasury Notes
5.875%, due 3/31/99, value $11,232,492)
(cost $11,000,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,000,000 $ 11,000,000
================
GENERAL MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) NOVEMBER 30, 1998
Principal
Time Deposits--1.9% Amount Value
- ------------------------------------------------------- _____________ _______________
Berliner Handels-und Frankforter Bank AG (Grand Cayman)
5.19%, 12/1/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,908,000 $ 11,908,000
Westdeutsche Landesbank Girozentrale (Grand Cayman)
5.50%, 12/1/98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 50,000,000
_______________
TOTAL TIME DEPOSITS
(cost $61,908,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61,908,000
================
TOTAL INVESTMENTS
(cost $3,280,656,971) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.5% $3,280,656,971
_______ ==============
LIABILITIES, LESS CASH AND RECEIVABLES . . . . . . . . . . . . . . . . . . . . . (.5%) $ (17,618,727)
_______ _______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $3,263,038,244
_______ ===============
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 10/8/98 to 11/10/98 at a cost of par value. At November 30, 1998, the
aggregate value of these securities was $155 million representing
approximately 4.8% of the Fund's 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, 1998
Cost Value
_______________ _______________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of
Investments--Note 1(b) . . . . . . . . . . . . . . . . $3,280,656,971 $3,280,656,971
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 1,868,806
Interest receivable . . . . . . . . . . . . . . . . . . . 28,034,479
Prepaid expenses . . . . . . . . . . . . . . . . . . . . 161,153
_______________
3,310,721,409
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 1,183,991
Due to Distributor . . . . . . . . . . . . . . . . . . . 333,896
Payable for investment securities purchased . . . . . . . 43,312,160
Payable for shares of Common Stock redeemed . . . . . . . 2,199,024
Accrued expenses . . . . . . . . . . . . . . . . . . . . 654,094
_______________
47,683,165
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,263,038,244
_______________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $3,263,106,694
Accumulated net realized gain (loss) on investments . . . (68,450)
_______________
NET ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,263,038,244
==============
NET ASSET VALUE PER SHARE
--------------------------------------
Class A Class B
________________ _______________
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 835,706,104 $2,427,332,140
Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 835,756,697 2,427,349,997
NET ASSET VALUE PER SHARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.00 $1.00
===== =====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED NOVEMBER 30, 1998
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $149,571,462
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . $ 13,222,636
Shareholder servicing costs--Note 2(c) . . . . . 6,047,538
Distribution fees--Note 2(b) . . . . . . . . . . 5,289,054
Registration fees . . . . . . . . . . . . . . . . 603,609
Custodian fees . . . . . . . . . . . . . . . . . 163,132
Prospectus and shareholders' reports . . . . . . 103,576
Professional fees . . . . . . . . . . . . . . . . 52,028
Director's fees and expenses--Note 2(d) . . . . . 38,365
Miscellaneous . . . . . . . . . . . . . . . . . . 23,907
______________
Total Expenses . . . . . . . . . . . . . . 25,543,845
Less--reduction in shareholder servicing costs due to
undertaking--Note 2(c) . . . . . . . . . . . . (1,046,213)
______________
Net Expenses . . . . . . . . . . . . . . . 24,497,632
_____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,073,830
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) . . . . . . . . . . . . . . . . 36,653
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $125,110,483
============
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
GENERAL MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Ten Months Ended Year Ended
November 30, 1998 November 30, 1997* January 31, 1997
___________________ ____________________ ________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . $ 125,073,830 $ 68,525,556 $ 49,280,474
Net realized gain (loss) on investments . . . . . . . . . . 36,653 (78,341) (8,067)
________________ ________________ _________________
Net Increase (Decrease) in Net Assets Resulting
from Operations . . . . . . . . . . . . . . . . . 125,110,483 68,447,215 49,272,407
________________ ________________ ________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net:
Class A Shares . . . . . . . . . . . . . . . . . . . . (42,077,699) (32,426,980) (34,241,653)
Class B Shares . . . . . . . . . . . . . . . . . . . . (82,996,131) (36,098,576) (15,038,821)
________________ ________________ ________________
Total Dividends . . . . . . . . . . . . . . . . . . (125,073,830) (68,525,556) (49,280,474)
________________ ________________ ________________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold:
Class A Shares . . . . . . . . . . . . . . . . . . . . 5,634,804,053 5,481,588,637 6,572,669,153
Class B Shares . . . . . . . . . . . . . . . . . . . . 6,698,310,567 3,353,368,498 1,019,289,506
Dividends reinvested:
Class A Shares . . . . . . . . . . . . . . . . . . . . 41,121,880 31,506,536 32,898,001
Class B Shares . . . . . . . . . . . . . . . . . . . . 80,819,334 35,189,462 14,154,018
Cost of shares redeemed:
Class A Shares . . . . . . . . . . . . . . . . . . . . (5,743,540,176) (5,373,865,859) (6,496,025,709)
Class B Shares . . . . . . . . . . . . . . . . . . . . (5,582,959,197) (2,526,588,101) (714,679,626)
________________ ________________ ________________
Increase (Decrease) in Net Assets from
Capital Stock Transactions . . . . . . . . . . . 1,128,556,461 1,001,199,173 428,305,343
________________ ________________ ________________
Total Increase (Decrease) in Net Assets . . . . . 1,128,593,114 1,001,120,832 428,297,276
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . 2,134,445,130 1,133,324,298 705,027,022
________________ ________________ ________________
End of Period . . . . . . . . . . . . . . . . . . . . . . . $3,263,038,244 $2,134,445,130 $1,133,324,298
============== ============== ==============
* The Fund 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
________________________________________________________________________
Year Ended Ten Months Ended
November 30, November 30, Year Ended January 31,
__________________________________
PER SHARE DATA: 1998 1997(1) 1997 1996 1995 1994
_____________ ________________ ______ ______ ______ ______
<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 . . . . . . . . . .049 .041 .047 .053 .037 .025
______ ______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . (.049) (.041) (.047) (.053) (.037) (.025)
______ ______ ______ ______ ______ ______
Net asset value, end of period . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN. . . . . . . . . . . 4.98% 4.99%(2) 4.81% 5.42% 3.75% 2.56%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . .77% .88%(2) .84% .86% .94% .94%
Ratio of net investment income
to average net assets . . . . . . . . 4.88% 4.89%(2) 4.71% 5.28% 3.68% 2.53%
Decrease reflected in above expense ratios
due to undertakings by the Manager . -- -- -- .01% .04% .02%
Net Assets, end of period (000's Omitted) . $835,706 $903,313 $764,119 $654,581 $572,116 $616,072
- -----------------------------
(1) The Fund changed its fiscal year end from January 31 to November 30.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS.
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
_____________________________________________________________
Year Ended Ten Months Ended
November 30, November 30, Year Ended January 31,
________________________
PER SHARE DATA: 1998 1997(1) 1997 1996(2)
_____________ _________________ ______ ______
Net asset value, beginning of period . . $ 1.00 $ 1.00 $ 1.00 $ 1.00
_______ _______ _______ _______
Investment Operations:
Investment income--net . . . . . . . . . .047 .039 .046 .043
_______ _______ _______ _______
Distributions:
Dividends from investment income--net . . (.047) (.039) (.046) (.043)
_______ _______ _______ _______
Net asset value, end of period . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= =======
TOTAL INVESTMENT RETURN. . . . . . . . . . . 4.78% 4.83%(3) 4.65% 5.18%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . 1.00% 1.00%(3) 1.00% 1.00%(3)
Ratio of net investment income
to average net assets . . . . . . . . 4.66% 4.78%(3) 4.56% 5.00%(3)
Decrease reflected in above expense ratios
due to undertakings by the Manager . .06% .05%(3) .07% .07%(3)
Net Assets, end of period (000's Omitted) . . $2,427,332 $1,231,132 $369,205 $50,446
- -----------------------------
(1) The Fund 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, as amended (the "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 (the "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 $.01 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.
(A) PORTFOLIO VALUATION: Investments 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.
Under the terms of the custody agreement, the Fund received net earnings credits
of $840 during the period ended November 30, 1998 based on available cash
balances left on deposit. Income earned under this arrangement is included in
interest income.
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 are normally declared and
paid annually, but the Fund may make distributions on a more frequent basis to
comply with the distribution
GENERAL MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
requirements of the Internal Revenue Code of 1986, as amended (the "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 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 $69,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to November 30, 1998. If not
applied, the carryover expires in fiscal 2005.
At November 30, 1998, the cost of investments for Federal income tax purposes
was substantially the same as the cost for financial reporting purposes (see the
Statement of Investments).
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("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 period ended November 30, 1998, there was no expense
reimbursement 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, Class A shares directly bear the
cost of preparing, printing and distributing prospectuses and statements of
additional information and implementing and operating the Plan. In addition,
Class A shares reimburse (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 period ended November 30,
1998, Class A shares were charged $1,724,844 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, Class B
shares directly bear 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, Class B shares reimburse
the Distributor for payments made to third parties for distributing their 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 period ended November 30, 1998, Class B
shares were charged $3,564,210 pursuant to the Class B Distribution Plan.
GENERAL MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(C) Under the Fund's Shareholder Services Plan with respect to Class A ("Class
A Shareholder Services Plan"), Class A shares reimburse 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 Class A shares and
providing reports and other information, and services related to the maintenance
of shareholder accounts. During the period ended November 30, 1998, Class A
shares were charged $240,310 pursuant to the Class A Shareholder Services Plan.
Under the Fund's Shareholder Services Plan with respect to Class B ("Class B
Shareholder Services Plan" ), Class B shares pay 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 Class B shares 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 had undertaken from December 1, 1997 through November 30, 1998,
that if the aggregate expenses of Class B shares (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 period ended November 30, 1998, $4,455,262 were charged
pursuant to the Class B Shareholder Services Plan, of which $1,046,213 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 period
ended November 30, 1998, the Fund was charged $263,144 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, 1998, and the related statement of operations for the year then
ended, and the statement of changes in net assets and financial highlights for
each of the years indicated therein. These financial statements and financial
highlights are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned as of November 30, 1998 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 financial position of
General Money Market Fund, Inc., at November 30, 1998 and the results of its
operations for the year then ended, and the changes in its net assets 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 4, 1999
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[reg.tm logo]
(reg.tm)
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. 196/696AR9811
General
Money Market
Fund, Inc.
Annual Report
November 30, 1998
