<PAGE> PAGE 1
000 B000000 12/31/97
000 C000000 0000705401
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 Y
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 PRINCIPAL MONEY MARKET FUND, INC.
001 B000000 811-03546
001 C000000 5152475476
002 A000000 THE PRINCIPAL FINANCIAL GROUP
002 B000000 DES MOINES
002 C000000 IA
002 D010000 50392
002 D020000 0200
003 000000 N
004 000000 Y
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
018 000000 Y
019 A000000 Y
019 B000000 33
019 C000000 PRINCORGRP
020 C000001 0
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 0
022 A000001 FIRST CHICAGO CAPITAL MARKETS
022 B000001 36-3595942
022 C000001 105610
022 D000001 0
022 A000002 GOLDMAN SACHS MONEY MARKET
022 B000002 13-3160926
022 C000002 61272
022 D000002 0
022 A000003 MERRILL LYNCH MONEY MARKET SECURITIES
022 B000003 13-2761776
022 C000003 57103
022 D000003 2150
022 A000004 LEHMAN BROTHERS
<PAGE> PAGE 2
022 B000004 13-2501865
022 C000004 54873
022 D000004 400
022 A000005 MORGAN, J.P. SECURITIES
022 B000005 13-3224016
022 C000005 14436
022 D000005 0
022 A000006 GENERAL ELECTRIC CO.
022 B000006 42-1192999
022 C000006 13862
022 D000006 410
022 A000007 SEARS ROEBUCK ACCEPTANCE CORP.
022 B000007 51-0080535
022 C000007 13953
022 D000007 0
022 A000008 BEAR STEARNS & CO.
022 B000008 13-3299429
022 C000008 11295
022 D000008 0
022 A000009 MORGAN STANLEY & CO.
022 B000009 13-2655998
022 C000009 10046
022 D000009 750
022 A000010 GENERAL ELECTRIC CAPITAL CORP.
022 B000010 13-1500700
022 C000010 9456
022 D000010 0
023 C000000 436869
023 D000000 3709
027 000000 Y
028 A010000 5488
028 A020000 180
028 A030000 0
028 A040000 5450
028 B010000 5257
028 B020000 179
028 B030000 0
028 B040000 3586
028 C010000 7855
028 C020000 206
028 C030000 0
028 C040000 4558
028 D010000 6540
028 D020000 199
028 D030000 0
028 D040000 8320
028 E010000 3519
028 E020000 179
028 E030000 0
028 E040000 4540
028 F010000 6087
<PAGE> PAGE 3
028 F020000 234
028 F030000 0
028 F040000 5842
028 G010000 34746
028 G020000 1177
028 G030000 0
028 G040000 32296
028 H000000 0
055 A000000 N
055 B000000 N
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.0
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 79.3
062 J000000 0.0
062 K000000 0.0
062 L000000 21.0
062 M000000 0.0
062 N000000 0.0
062 O000000 0.0
062 P000000 0.0
062 Q000000 0.0
062 R000000 -0.3
063 A000000 50
063 B000000 0.0
064 A000000 Y
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
071 A000000 0
071 B000000 0
071 C000000 0
071 D000000 0
072 A000000 12
072 B000000 2544
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 225
072 G000000 0
072 H000000 0
072 I000000 0
072 J000000 9
<PAGE> PAGE 4
072 K000000 0
072 L000000 0
072 M000000 7
072 N000000 0
072 O000000 0
072 P000000 0
072 Q000000 0
072 R000000 0
072 S000000 0
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 4
072 X000000 245
072 Y000000 0
072 Z000000 2299
072AA000000 0
072BB000000 0
072CC010000 0
072CC020000 0
072DD010000 2299
072DD020000 0
072EE000000 0
073 A010000 0.0493
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 9
074 B000000 0
074 C000000 47444
074 D000000 0
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 0
074 K000000 0
074 L000000 287
074 M000000 0
074 N000000 47740
074 O000000 127
074 P000000 0
074 Q000000 0
074 R010000 0
074 R020000 0
074 R030000 0
074 R040000 298
074 S000000 0
074 T000000 47315
074 U010000 47315
<PAGE> PAGE 5
074 U020000 0
074 V010000 1.00
074 V020000 0.00
074 W000000 0.9999
074 X000000 9
074 Y000000 0
075 A000000 44888
075 B000000 0
076 000000 0.00
077 A000000 Y
077 B000000 Y
077 C000000 Y
077 D000000 N
077 E000000 N
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 C000000 16000
081 A000000 Y
081 B000000 32
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
SIGNATURE A. S. FILEAN
TITLE V.P. & SECRETARY
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 47444285
<INVESTMENTS-AT-VALUE> 47444285
<RECEIVABLES> 287254
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 8630
<TOTAL-ASSETS> 47740169
<PAYABLE-FOR-SECURITIES> 126885
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 298366
<TOTAL-LIABILITIES> 425251
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 47314918
<SHARES-COMMON-STOCK> 47314918
<SHARES-COMMON-PRIOR> 46244249
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 47314918
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 2544059
<OTHER-INCOME> 0
<EXPENSES-NET> (244954)
<NET-INVESTMENT-INCOME> 2299105
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 2299105
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2299105)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 70744074
<NUMBER-OF-SHARES-REDEEMED> (71923637)
<SHARES-REINVESTED> 2250232
<NET-CHANGE-IN-ASSETS> 1070669
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 224424
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 244954
<AVERAGE-NET-ASSETS> 44887890
<PER-SHARE-NAV-BEGIN> 1.000
<PER-SHARE-NII> .051
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.051)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.000
<EXPENSE-RATIO> .55
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
Report of Independent Auditors on Internal Control
The Board of Directors and Shareholders
Principal Money Market Fund, Inc.
In planning and performing our audit of the financial statements of Principal
Money Market Fund, Inc. for the year ended December 31, 1997, we considered its
internal control, including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements of Form
N-SAR, not to provide assurance on internal control.
The management of Principal Money Market Fund, Inc. is responsible for
establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs. Generally, controls that are relevant to an
audit pertain to the entity's objective of preparing financial statements for
external purposes that are fairly presented in conformity with generally
accepted accounting principles. These controls include the safeguarding of
assets against unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of specific
internal control components does not reduce to a relatively low level the risk
that errors or irregularities in amounts that would be material in relation to
the financial statements being audited may occur and not be detected within a
timely period by employees in the normal course of performing their assigned
functions. However, we noted no matters involving internal control, including
control activities for safeguarding securities, that we consider to be material
weaknesses as defined above as of December 31, 1997.
This report is intended solely for the information and use of management and the
Board of Directors of Principal Money Market Fund, Inc. and the Securities and
Exchange Commission.
/s/ Ernst & Young LLP
Des Moines, Iowa
January 16, 1998
SPECIAL MEETING OF SHAREHOLDERS PRINCIPAL MONEY MARKET FUND, INC.
HELD SEPTEMBER 16, 1997
1. Election of the Board of Directors.
For Withheld
Davis 42,302,140 386,652
Ehrle 42,132,552 556,240
Ferguson 42,395,818 292,974
Gilbert 42,242,211 446,581
Griswell 42,398,065 290,727
Jones 42,242,211 446,581
Keller 42,241,105 447,686
Lukavsky 42,370,943 317,849
Peebler 42,273,229 415,562
2. Ratification of selection of Ernst & Young LLP as independent public
auditors.
In Favor Opposed Abstain
41,920,881 345,708 422,204
3. Approval of change of fund structure. Name changed to Principal Variable
Contract Fund, Inc. Money Market Account effective 1/1/98.
In Favor Opposed Abstain
40,961,885 1,144,958 581,948
4. Approval of elimination of the fundamental investment restriction regarding
the purchase of shares of other investment companies.
In Favor Opposed Abstain
40,903,699 1,312,169 472,924
5. Approval of elimination of the fundamental investment restriction
prohibiting joint participation in any securities trading account.
In Favor Opposed Abstain
40,633,345 1,111,963 943,484
6. Approval of change to the fundamental investment restriction with respect
to diversification requirements.
In Favor Opposed Abstain
40,453,876 1,724,711 510,205
7. Approval of change to the fundamental investment restriction with respect
to purchase of securities of a single issuer.
In Favor Opposed Abstain
40,423,874 1,703,641 534,278
8. Approval of change to the fundamental investment restriction prohibiting
the purchase of restricted securities.
In Favor Opposed Abstain
40,329,737 1,806,422 552,633
