<PAGE>
OPPENHEIMER MONEY MARKET FUND, INC.
Annual Report December 31, 1995
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[logo] OppenheimerFunds-r-
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This Fund is for people who want to earn current INCOME while maintaining the
VALUE of their initial investment.
HOW YOUR FUND IS MANAGED
Oppenheimer Money Market Fund, Inc. seeks maximum current income with stability
of principal while giving you a way to keep a portion of your assets liquid.
The manager of your Fund looks for maximum yield from money market securities,
such as short-term corporate notes, U.S. government securities, and certificates
of deposit.
The Fund's dividends accrue daily and are paid monthly. And to offer you
stability of principal, the Fund seeks to maintain a constant $1.00 per share
net asset value (NAV). (1)
PERFORMANCE
The Fund's seven-day annualized yield as of 12/31/95 was 5.22% with compounding
and 5.09% without compounding. (2)
Compounded annualized yield for the 12 months ended 12/31/95 was 5.40%. The
corresponding yield without compounding was 5.26%.
OUTLOOK
"Our outlook remains positive. Our goal in a trading range market like this one
is to work to position ourselves to take full advantage of the market whether
rates change or not, and to be on the lookout for anything that we can do to
increase yield without compromising safety."
Carol Wolf, Portfolio Manager
December 31, 1995
Past performance does not guarantee future results.
1. The Fund is neither insured nor guaranteed by the U.S. government, and there
is no assurance that the Fund will maintain a stable $1 share price in the
future.
2. Compounded yields assume reinvestment of dividends.
2 Oppenheimer Money Market Fund, Inc.
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[photo]
Bridget A. Macaskill
President
Oppenheimer Money Market Fund, Inc.
Dear OppenheimerFunds Shareholder,
Money market funds have always been a highly liquid place for cash "on the
sidelines" -- earning a steady income while protecting principal. In 1995,
money market funds turned out to be a good investment choice for the income-
oriented investor.
While the 30-year U.S. Treasury yield fell from nearly 8% to 6% during the year,
and rates on intermediate-term bonds fell by nearly as much, money market yields
stayed about the same throughout the year. This made the yield on money market
funds very attractive relative to intermediate-term bonds.
Normally, long-term bonds pay anywhere from three to five percentage points more
than a money market fund. That's because long-term investors expect a higher
interest rate in exchange for the longer commitment and more substantial amount
of their investment. But if investors expect interest rates to fall -- as they
have throughout the year -- they don't want to make that commitment.
One reason for this situation is the relationship between money market funds and
the inflation rate. Typically, money market yields are roughly one percentage
point above inflation. Assuming that the annual inflation rate is 2.5%, money
market yields would normally be about 3.5%, while longer-term rates might be as
high as 5.5%. However, the current difference between money market yields and
inflation is three times its normal level. Part of the reason for this anomaly
is the successful way in which the Federal Reserve Board has fought inflation.
Between February 1994 and February 1995, the Fed doubled short-term interest
rates from 3% to 6% in an effort to slow down the economy. By the spring of
1995, the economy stabilized and began to decelerate. And economists began to
speculate that the Fed would lower short-term rates to keep the economy from
going into a recession. Meanwhile, longer-term interest rates had already begun
to decline in anticipation of the Fed action. And although the Fed reduced
short-term interest rates slightly in July, it didn't lower rates nearly as much
as the decline in long-term rates, which are market driven.
The Federal Reserve Board accomplished its mission of a "soft landing" for the
economy. Unlike 1994, the economy is not growing fast enough to rekindle
inflation, yet it is growing enough to avoid recession. With the economy
continuing to slow, we believe that another cut by the Fed is likely. And since
longer-term rates will probably come down further, we expect the relationship
between short-term yields and longer-term yields will remain similar for the
time being.
As a result, money market funds continue to offer relatively high yields in
relation to longer-term investments -- and in relation to inflation. Your
portfolio manager discusses the outlook for your Fund in light of these broad
issues on the following pages.
Thank you for your confidence in OppenheimerFunds, and we look forward to
helping you reach your investment goals in the future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
January 22, 1996
3 Oppenheimer Money Market Fund, Inc.
<PAGE>
Carol Wolf
Portfolio Manager
Q + A
An interview with your Fund's manager.
HOW HAS THE FUND PERFORMED?
Performance over the period has been quite good in light of the fact that our
market has been relatively volatile. Because the types of securities we buy are
extremely short-term, they tend to be affected by a wide variety of reports on
the economy, and that's essentially what we've seen over the past six months --
a somewhat erratic market driven by changing economic news.
WHAT INVESTMENTS HAVE HAD A POSITIVE EFFECT ON THE PORTFOLIO?
During the past 12 months, the Fund benefited from a period of considerable
demand for relatively high yielding Small Business Administration loans, securi-
ties that had made up approximately 8% of our portfolio. With demand for these
issues increasing, causing their prices to go up, we sold almost all of our
holdings for a profit, which is somewhat unusual in our short-term market.(1)
WERE THERE ANY INVESTMENTS THAT DIDN'T PERFORM AS WELL AS EXPECTED?
Not really. While the income available from money market securities depends
primarily on prevailing interest rates, our market tends to offer a great deal
of stability and predictability in terms of price.
WHAT AREAS OF THE MARKET ARE YOU CURRENTLY TARGETING?
Over most of the past six months, the yield curve, which is the measure of the
difference in yields available from bonds with different maturities, had been
relatively flat. This caused a situation in which longer-term investments,
which generally offer higher yields than shorter-term vehicles, no longer
offered that advantage. For example, rates on investments with maturities
ranging from one month to one year had yields that were about the same during
that time period.
More recently, however, we began to experience an inverted yield curve, an
unusual phenomenon in which shorter maturity securities actually have higher
yields than longer ones. We believe this inverted curve is the result of the
market's expectation that the Federal Reserve will lower rates. What it means
to us as investors is that we should try to lock in currently higher rates.
That's what we've focused on doing recently, working to extend maturities
where appropriate, thereby taking advantage of today's market for as long as
possible.
WHAT IS YOUR OUTLOOK FOR THE FUND?
Our outlook remains positive. As we move into 1996, we don't expect any
dramatic interest rate changes on the horizon. Even if the Federal Reserve
cuts rates as the market believes it will, we don't expect it to be a big cut,
so it shouldn't negatively impact our yield to a significant degree. Our goal
in a trading range market like this one is to work to position ourselves to take
full advantage of the market whether rates change or not, and to be on the look-
out for anything that we can do to increase yield without compromising safety.//
1. The Fund's portfolio is subject to change.
4 Oppenheimer Money Market Fund, Inc.
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<CAPTION>
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STATEMENT OF INVESTMENTS December 31, 1995
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
============================================================================================================================
BANKERS' ACCEPTANCES - 0.6%
- ----------------------------------------------------------------------------------------------------------------------------
CoreStates Bank, N.A., 5.63%, 1/19/96 (Cost $5,076,317) $ 5,090,647 $ 5,076,317
============================================================================================================================
CERTIFICATES OF DEPOSIT - 2.4%
- ----------------------------------------------------------------------------------------------------------------------------
DOMESTIC CERTIFICATES OF DEPOSIT - 0.6%
- ----------------------------------------------------------------------------------------------------------------------------
LaSalle National Bank, 5.40%, 7/5/96 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------------------------------------------
YANKEE CERTIFICATES OF DEPOSIT - 1.8%
- ----------------------------------------------------------------------------------------------------------------------------
Sanwa Bank Ltd., 5.67%, 1/10/96 5,000,000 4,999,881
-----------------------------------------------------------------------------------------------------------------
Societe Generale, 5.86%, 1/22/96 10,000,000 10,000,000
----------------
14,999,881
----------------
Total Certificates of Deposit (Cost $19,999,881) 19,999,881
============================================================================================================================
DIRECT BANK OBLIGATIONS - 13.0%
- ----------------------------------------------------------------------------------------------------------------------------
Abbey National North America Corp., 5.69%, 2/1/96 5,000,000 4,975,501
-----------------------------------------------------------------------------------------------------------------
ABN Amro North America Finance, Inc.:
5.45%, 1/12/96 12,000,000 11,980,016
5.55%, 4/29/96 5,000,000 4,908,271
5.61%, 4/25/96 5,000,000 4,910,396
5.71%, 1/24/96 5,000,000 4,981,760
-----------------------------------------------------------------------------------------------------------------
Colorado National Bank of Denver, 5.918%, 4/17/96(1) 5,000,000 4,999,704
-----------------------------------------------------------------------------------------------------------------
FCC National Bank, 5.85%, 3/4/96(1) 4,000,000 4,001,351
-----------------------------------------------------------------------------------------------------------------
First National Bank of Boston:
5.53%, 5/20/96 5,000,000 5,000,000
5.77%, 1/16/96 5,000,000 5,000,000
5.78%, 1/4/96 5,000,000 5,000,000
5.88%, 10/30/96 5,000,000 5,000,000
5.75%, 5/31/96(1) 5,000,000 5,000,000
-----------------------------------------------------------------------------------------------------------------
Huntington National Bank, 6.15%, 3/4/96(1) 5,000,000 5,002,313
-----------------------------------------------------------------------------------------------------------------
National Westminster Bank of Canada:
5.65%, 1/26/96 5,000,000 4,980,382
5.70%, 2/2/96 5,000,000 4,974,667
-----------------------------------------------------------------------------------------------------------------
NationsBank of Texas, 5.50%, 6/28/96 5,000,000 5,000,000
-----------------------------------------------------------------------------------------------------------------
Shawmut Bank of Connecticut, N.A.:
5.68%, 6/24/96(1) 5,000,000 4,999,825
5.75%, 6/10/96(1) 5,000,000 4,999,281
5.75%, 6/17/96(1) 5,000,000 5,000,000
5.895%, 5/10/96(1) 5,000,000 5,000,000
----------------
Total Direct Bank Obligations (Cost $105,713,467) 105,713,467
============================================================================================================================
LETTERS OF CREDIT - 4.2%
- ----------------------------------------------------------------------------------------------------------------------------
Barclays Bank PLC, guaranteeing commercial paper of:
Banco Real, S.A.-Grand Cayman Branch, 5.63%, 4/18/96 5,000,000 4,915,550
Petroleo Brasileiro, S.A.-Petrobras, 5.40%, 6/7/96 10,000,000 9,763,000
Petroleo Brasileiro, S.A.-Petrobras, 5.52%, 5/20/96 5,000,000 4,892,667
-----------------------------------------------------------------------------------------------------------------
Credit Suisse, guaranteeing commercial paper of:
Daewoo International Corp., 5.70%, 2/20/96 10,000,000 9,920,833
Queensland Alumina Limited, 5.67%, 2/16/96 5,000,000 4,963,775
----------------
Total Letters of Credit (Cost $34,455,825) 34,455,825
</TABLE>
5 Oppenheimer Money Market Fund, Inc.
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<TABLE>
<CAPTION>
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STATEMENT OF INVESTMENTS (Continued)
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
============================================================================================================================
SHORT-TERM NOTES - 72.3%
- ----------------------------------------------------------------------------------------------------------------------------
BANKS - 6.0%
-----------------------------------------------------------------------------------------------------------------
Barnett Banks, Inc., 6.10%, 1/5/96 5,000,000 4,996,611
-----------------------------------------------------------------------------------------------------------------
Chemical Banking Corp.:
5.22%, 6/27/96 10,000,000 9,735,472
5.70%, 1/19/96 15,000,000 14,957,250
-----------------------------------------------------------------------------------------------------------------
CoreStates Capital Corp.:
5.64%, 1/22/96 5,000,000 4,983,550
5.71%, 2/15/96 5,000,000 4,964,312
5.72%, 1/17/96 5,000,000 4,987,289
6.10%, 5/15/96(1) 4,250,000 4,256,864
----------------
48,881,348
- ----------------------------------------------------------------------------------------------------------------------------
BEVERAGES - 0.6%
-----------------------------------------------------------------------------------------------------------------
Coca-Cola Enterprises, Inc., 5.67%-5.68%, 2/20/96(2) 5,000,000 4,960,555
- ----------------------------------------------------------------------------------------------------------------------------
BROKER/DEALERS - 11.8%
-----------------------------------------------------------------------------------------------------------------
CS First Boston, Inc., 5.70%, 1/26/96 5,000,000 4,980,208
-----------------------------------------------------------------------------------------------------------------
Dean Witter, Discover & Co., 5.895%, 11/15/96(1) 10,000,000 10,015,178
-----------------------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc., 6.25%, 1/2/96 20,000,000 19,996,528
-----------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
5.65%, 3/29/96 5,000,000 4,930,944
5.68%-5.70%, 2/29/96 10,000,000 9,906,747
5.70%-5.72%, 1/31/96 10,000,000 9,952,500
6.02%, 9/19/96(1) 5,000,000 5,000,000
-----------------------------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc., 5.53%, 9/30/96(1) 31,800,000 31,800,000
----------------
96,582,105
- ----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL FINANCE - 12.3%
-----------------------------------------------------------------------------------------------------------------
CIT Group Holdings, Inc.:
5.55%, 11/18/96(1) 5,000,000 4,995,625
5.70%, 3/1/96 5,000,000 4,952,500
5.95%, 1/12/96(1) 5,000,000 4,999,955
6.027%, 1/10/96(3) 10,000,000 10,000,000
-----------------------------------------------------------------------------------------------------------------
FINOVA Capital Corp.:
5.72%-5.97%, 1/31/96 5,000,000 4,976,167
5.85%-5.90%, 1/30/96 5,000,000 4,976,236
5.87%, 4/26/96(1) 5,000,000 5,000,000
5.90%, 1/29/96 5,000,000 4,977,056
5.90%, 2/5/96 5,000,000 4,971,319
6.40%, 1/3/96 10,700,000 10,696,195
-----------------------------------------------------------------------------------------------------------------
Heller Financial, Inc.:
5.52%, 3/12/96 5,000,000 4,945,567
5.75%, 10/7/96(1) 5,000,000 5,000,000
5.75%, 4/5/96 5,000,000 4,924,132
5.78%, 1/31/96 5,000,000 4,975,917
5.78%, 2/28/96 5,000,000 4,953,439
5.80%, 4/29/96 5,000,000 4,904,139
5.957%, 8/28/96(1) 10,000,000 10,000,000
----------------
100,248,247
</TABLE>
6 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES - 4.9%
-----------------------------------------------------------------------------------------------------------------
Mitsubishi International Corp.:
5.41%, 6/18/96(2) 2,700,000 2,631,428
5.58%, 3/15/96 5,000,000 4,942,650
5.76%, 1/23/96 5,540,000 5,520,499
5.76%, 1/24/96 13,100,000 13,051,750
5.76%, 1/25/96 5,000,000 4,980,783
5.78%, 1/31/96 5,000,000 4,975,917
-----------------------------------------------------------------------------------------------------------------
Pacific Dunlop Holdings, Inc., guaranteed by Pacific
Dunlop Ltd., 5.70%, 2/29/96(2) 3,952,000 3,915,082
----------------
40,018,109
- ----------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE - 2.7%
-----------------------------------------------------------------------------------------------------------------
Beneficial Corp., 5.26%, 2/1/96(1) 5,000,000 5,000,000
-----------------------------------------------------------------------------------------------------------------
Island Finance Puerto Rico, Inc.:
5.67%, 2/22/96 5,000,000 4,958,111
5.71%, 2/29/96 12,200,000 12,085,832
----------------
22,043,943
- ----------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL - 6.0%
-----------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.67%, 2/21/96 10,000,000 9,919,675
-----------------------------------------------------------------------------------------------------------------
General Electric Capital Corp., 5.46%, 5/7/96 15,000,000 14,710,017
-----------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.47%, 8/19/96(1) 5,000,000 4,999,819
5.50%, 5/13/96(1) 5,000,000 5,001,429
6.05%, 1/2/96 10,000,000 9,998,319
-----------------------------------------------------------------------------------------------------------------
Toyota Motor Credit Corp., 5.20%, 1/12/96(1) 4,360,000 4,359,083
----------------
48,988,342
- ----------------------------------------------------------------------------------------------------------------------------
ELECTRIC UTILITIES - 1.0%
-----------------------------------------------------------------------------------------------------------------
Central & Southwest Corp., 5.71%, 2/16/96 8,000,000 7,941,682
- ----------------------------------------------------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT - 1.8%
-----------------------------------------------------------------------------------------------------------------
Xerox Corp., 5.72%, 1/11/96 15,000,000 14,976,167
- ----------------------------------------------------------------------------------------------------------------------------
ELECTRONICS - 0.6%
-----------------------------------------------------------------------------------------------------------------
Mitsubishi Electric Finance America, Inc., 5.32%, 6/19/96 5,000,000 4,874,389
- ----------------------------------------------------------------------------------------------------------------------------
ENVIRONMENTAL - 1.0%
-----------------------------------------------------------------------------------------------------------------
WMX Technologies, Inc., 5.32%, 9/10/96(2) 8,000,000 7,700,898
- ----------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES & SERVICES - 3.5%
-----------------------------------------------------------------------------------------------------------------
A.H. Robins Co., Inc., guaranteed by American Home
Products, 5.71%, 2/7/96(2) 5,000,000 4,970,657
-----------------------------------------------------------------------------------------------------------------
American Home Food Products, Inc., guaranteed by
American Home Products:
5.72%, 1/29/96(2) 13,600,000 13,539,495
5.72%, 1/30/96(2) 5,500,000 5,474,657
-----------------------------------------------------------------------------------------------------------------
American Home Products, 5.72%, 1/30/96(2) 5,000,000 4,976,961
----------------
28,961,770
- ----------------------------------------------------------------------------------------------------------------------------
INSURANCE - 3.3%
-----------------------------------------------------------------------------------------------------------------
General American Life Insurance Co., 6%, 1/6/96(2)(3) 20,000,000 20,000,000
-----------------------------------------------------------------------------------------------------------------
TransAmerica Life Insurance & Annuity Co., 5.95%,
1/6/1996(2)(3) 7,000,000 7,000,000
----------------
27,000,000
- ----------------------------------------------------------------------------------------------------------------------------
LEASING & FACTORING - 0.6%
-----------------------------------------------------------------------------------------------------------------
International Lease Finance Corp., 5.70%, 1/19/96 5,000,000 4,985,750
- ----------------------------------------------------------------------------------------------------------------------------
MANUFACTURING - 2.4%
-----------------------------------------------------------------------------------------------------------------
Hanson Finance (UK) PLC, guaranteed by Hanson PLC:
5.70%, 2/5/96 5,000,000 4,972,292
5.71%, 1/24/96 15,000,000 14,945,279
----------------
19,917,571
</TABLE>
7 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
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STATEMENT OF INVESTMENTS (Continued)
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
NONDURABLE HOUSEHOLD GOODS - 0.6%
-----------------------------------------------------------------------------------------------------------------
Colgate-Palmolive Co., 5.37%, 6/24/96(2) 5,000,000 4,869,358
- ----------------------------------------------------------------------------------------------------------------------------
SAVINGS & LOANS - 4.6%
-----------------------------------------------------------------------------------------------------------------
Great Western Bank FSB:
5.70%, 2/5/96 5,000,000 4,972,292
5.72%-5.74%, 1/22/96 7,500,000 7,474,800
5.72%-5.75%, 1/29/96 5,500,000 5,475,531
5.74%, 1/25/96 5,000,000 4,980,867
5.74%, 1/26/96 10,000,000 9,960,139
-----------------------------------------------------------------------------------------------------------------
Household Bank FSB, 5.89%, 9/27/96(1) 5,000,000 4,999,566
----------------
37,863,195
- ----------------------------------------------------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL - 5.4%
-----------------------------------------------------------------------------------------------------------------
Cooperative Association of Tractor Dealers, Inc.:
5.64%, 1/16/96 5,100,000 5,088,015
5.67%, 3/27/96 8,200,000 8,088,833
5.67%, 3/8/96 5,200,000 5,145,127
5.70%, 4/5/96 3,100,000 3,053,371
5.75%, 2/2/96 2,000,000 1,989,778
-----------------------------------------------------------------------------------------------------------------
Madison Funding Corp.:
5.70%, 1/22/96 16,000,000 15,943,253
5.77%-5.95%, 1/10/96 5,000,000 4,992,787
----------------
44,301,164
- ----------------------------------------------------------------------------------------------------------------------------
SPECIALTY RETAILING - 2.0%
-----------------------------------------------------------------------------------------------------------------
St. Michael Finance, Ltd., guaranteed by Marks & Spencer PLC:
5.63%, 1/31/96 10,150,000 10,102,380
5.70%, 2/12/96 6,000,000 5,960,100
----------------
16,062,480
- ----------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-TECHNOLOGY - 1.2%
-----------------------------------------------------------------------------------------------------------------
NYNEX Corp.:
5.70%-5.73%, 2/12/96 5,000,000 4,966,750
5.74%, 1/31/96 5,000,000 4,976,083
----------------
9,942,833
----------------
Total Short-Term Notes (Cost $591,119,906) 591,119,906
============================================================================================================================
U.S. GOVERNMENT OBLIGATIONS - 4.0%
- ----------------------------------------------------------------------------------------------------------------------------
Export-Import Bank:
6.32%, 1/2/96(1)(2) 629,358 632,592
6.32%, 1/2/96(1)(2) 514,554 517,198
-----------------------------------------------------------------------------------------------------------------
Small Business Administration, 10.38%, 1/2/96(3) 509,934 550,840
-----------------------------------------------------------------------------------------------------------------
Student Loan Marketing Assn., guaranteeing commercial
paper of:
New Hampshire Higher Education Loan Corp.,
Commercial Paper Nts.:
Series 1995A, 5.72%, 1/12/96 4,411,000 4,403,291
Series 1995A, 6%, 1/5/96 2,203,000 2,201,531
Secondary Market Services, Inc., Education Loan
Revenue Nts.:
Series-1995A, 5.72%-5.75%, 1/12/96 13,166,000 13,142,934
Series-1995A, 5.77%, 1/19/96 11,156,000 11,124,038
----------------
Total U.S. Government Obligations (Cost $32,572,424) 32,572,424
</TABLE>
8 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
<S> <C> <C> <C>
============================================================================================================================
FOREIGN GOVERNMENT OBLIGATIONS - 3.0%
- ----------------------------------------------------------------------------------------------------------------------------
New South Wales Treasury Corp., guaranteed by the
State of New South Wales, Commonwealth of Australia,
5.45%, 1/11/96 3,000,000 2,995,458
-----------------------------------------------------------------------------------------------------------------
Swedish Export Credit Corp., supported by Kingdom of
Sweden, 5.68%, 1/16/96 5,000,000 4,988,167
-----------------------------------------------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale supported by
Federal Republic of Germany, guaranteeing commercial
paper of:
Unibanco-Unaio de Brancos Brasileiros S.A.-Grand Cayman:
5.58%, 4/4/96 5,000,000 4,927,150
5.66%, 4/12/96 7,000,000 6,887,743
5.66%, 4/15/96 5,000,000 4,849,067
----------------
Total Foreign Government Obligations (Cost $24,647,585) 24,647,585
============================================================================================================================
REPURCHASE AGREEMENT - 0.5%
- ----------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with PaineWebber, Inc., 5.93%, dated 12/29/95, to
be repurchased at $4,052,689 on 1/2/96, collateralized by Government
National Mortgage Assn. Participation Nts., 7%-8%, 8/15/23-11/15/25,
with a value of $2,787,252, and Federal National Mortgage Assn.
Participation Nts., 7.50%, 3/1/24, with a value of $1,627,820
(Cost $4,050,000) 4,050,000 4,050,000
-----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 100.0% 817,635,405
-----------------------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES 0.0 292,305
-------------- ------------------
NET ASSETS 100.0% $817,927,710
============== ==================
<FN>
Short-term notes, bankers' acceptances, direct bank obligations and
letters of credit are generally traded on a discount basis; the
interest rate is the discount rate received by the Fund at the time of
purchase. Other securities normally bear interest at the rates shown.
1. Variable rate security. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on December 31, 1995.
2. Security issued in an exempt transaction, without registration
under the Securities Act of 1933 (the Act). The securities are carried
at amortized cost, and amount to $81,188,881, or 9.93% of the Fund's
net assets. Pursuant to guidelines adopted by the Board of Directors,
these securities are determined to be liquid.
3. Floating or variable rate obligation maturing in more than one
year. The interest rate, which is based on specific, or an index of,
market interest rates, is subject to change periodically and is the
effective rate on December 31, 1995. This instrument may also have a
demand feature which allows the recovery of principal at any time, or
at specified intervals not exceeding one year, on up to 30 days'
notice. Maturity date shown represents effective maturity based on
variable rate and, if applicable, demand feature.
See accompanying Notes to Financial Statements.
</FN>
</TABLE>
9 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES December 31, 1995
<S> <C> <C>
========================================================================================================================
ASSETS Investments, at value - see accompanying statement $817,635,405
--------------------------------------------------------------------------------------------------
Cash 5,464,842
--------------------------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 33,414,520
Interest and principal paydowns 1,662,363
--------------------------------------------------------------------------------------------------
Other 115,521
-------------
Total assets 858,292,651
========================================================================================================================
LIABILITIES Payables and other liabilities:
Shares of capital stock redeemed 39,723,859
Directors' fees 179,410
Shareholder reports 174,782
Dividends 177,437
Transfer and shareholder servicing agent fees 87,307
Other 22,146
-------------
Total liabilities 40,364,941
========================================================================================================================
NET ASSETS $817,927,710
-------------
-------------
========================================================================================================================
COMPOSITION OF Par value of shares of capital stock $ 81,793,720
NET ASSETS -------------------------------------------------------------------------------------------------
Additional paid-in capital 736,143,480
--------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (9,490)
-------------
Net assets - applicable to 817,937,200 shares of capital
stock outstanding $817,927,710
-------------
-------------
========================================================================================================================
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS For the Year Ended December 31, 1995
<S> <C> <C>
========================================================================================================================
INVESTMENT INCOME Interest $52,074,805
EXPENSES Management fees - Note 3 3,759,621
--------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees - Note 3 2,965,169
--------------------------------------------------------------------------------------------------
Shareholder reports 524,397
--------------------------------------------------------------------------------------------------
Registration and filing fees 124,687
--------------------------------------------------------------------------------------------------
Directors' fees and expenses 86,647
--------------------------------------------------------------------------------------------------
Custodian fees and expenses 66,156
--------------------------------------------------------------------------------------------------
Legal and auditing fees 57,389
--------------------------------------------------------------------------------------------------
Insurance expenses 36,048
--------------------------------------------------------------------------------------------------
Other 83,910
-------------
Total expenses 7,704,024
========================================================================================================================
NET INVESTMENT INCOME 44,370,781
========================================================================================================================
NET REALIZED GAIN ON INVESTMENTS 639,389
========================================================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $45,010,170
------------
------------
</TABLE>
See accompanying Notes to Financial Statements.
11 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
1995 1994
<S> <C> <C> <C>
=========================================================================================================================
OPERATIONS Net investment income $ 44,370,781 $ 30,443,600
---------------------------------------------------------------------------------------------------
Net realized gain (loss) 639,389 (51,539)
--------------------------------
Net increase in net assets resulting
from operations 45,010,170 30,392,061
=========================================================================================================================
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS (44,968,631) (30,443,600)
=========================================================================================================================
CAPITAL STOCK Net increase (decrease) in net assets resulting from
TRANSACTIONS capital stock transactions - Note 2 (111,066,422) 317,726,707
=========================================================================================================================
NET ASSETS Total increase (decrease) (111,024,883) 317,675,168
---------------------------------------------------------------------------------------------------
Beginning of period 928,952,593 611,277,425
-------------------------------
End of period $817,927,710 $928,952,593
-------------------------------
-------------------------------
</TABLE>
See accompanying Notes to Financial Statements.
12 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
YEAR ENDED DECEMBER 31,
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
====================================================================================================================================
PER SHARE OPERATING DATA:
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income and net realized gain .05 .04 .03 .03 .06 .08 .08 .07 .06 .06
Dividends and distributions to shareholders (.05) (.04) (.03) (.03) (.06) (.08) (.08) (.07) (.06) (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
========================================================================================
====================================================================================================================================
TOTAL RETURN, AT NET ASSET VALUE (1) 5.40% 3.76% 2.71% 3.47% 5.87% 7.99% 8.88% 7.14% 6.38% 6.35%
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (in millions) $818 $929 $611 $692 $899 $1,082 $940 $794 $718 $744
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $855 $804 $653 $811 $1,003 $1,033 $873 $713 $620 $752
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 5.19% 3.79% 2.65% 3.42% 5.66% 7.66% 8.55% 6.98% 6.04% 6.12%
Expenses 0.90% 0.82% 0.87% 0.88% 0.77% 0.74% 0.78% 0.80% 0.86% 0.77%
<FN>
1. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Total returns are not
annualized for periods of less than one full year.
See accompanying Notes to Financial Statements.
</FN>
</TABLE>
13 Oppenheimer Money Market Fund, Inc.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. SIGNIFICANT ACCOUNTING POLICIES
Oppenheimer Money Market Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek the
maximum current income that is consistent with stability of principal. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager). The following
is a summary of significant accounting policies consistently followed by the
Fund.
- --------------------------------------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued on the basis of
amortized cost, which approximates market value.
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
FEDERAL TAXES. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no federal
income or excise tax provision is required.
- --------------------------------------------------------------------------------
DIRECTORS' FEES AND EXPENSES. The Fund has adopted a nonfunded retirement plan
for the Fund's independent directors. Benefits are based on years of service and
fees paid to each director during the years of service. During the year ended
December 31, 1995, a provision of $18,528 was made for the Fund's projected
benefit obligations, and a payment of $2,280 was made to a retired director,
resulting in an accumulated liability of $144,180 at December 31, 1995.
- --------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to declare dividends from net
investment income each day the New York Stock Exchange is open for business and
pay such dividends monthly. To effect its policy of maintaining a net asset
value of $1.00 per share, the Fund may withhold dividends or make distributions
of net realized gains.
- --------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date). Realized gains and losses on investments are
determined on an identified cost basis, which is the same basis used for federal
income tax purposes.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period.
Actual results could differ from those estimates.
14 Oppenheimer Money Market Fund, Inc.
<PAGE>
================================================================================
2. CAPITAL STOCK
The Fund has authorized 5,000,000,000 shares of $.10 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1995 1994
------------------------------- ---------------------------------
SHARES AMOUNT SHARES AMOUNT
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------
Sold 1,772,666,521 $1,772,666,521 1,884,595,724 $1,884,595,724
Dividends and
distributions
reinvested 42,507,860 42,507,860 28,594,376 28,594,376
Redeemed (1,926,240,803) (1,926,240,803) (1,595,463,393) (1,595,463,393)
--------------- --------------- --------------- ---------------
Net increase
(decrease) (111,066,422) $ (111,066,422) 317,726,707 $ 317,726,707
=============== =============== =============== ===============
</TABLE>
================================================================================
3. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of .45% on the first
$500 million of average annual net assets with a reduction of .025% on each $500
million thereafter, to .375% on net assets in excess of $1.5 billion. The
Manager has agreed to reimburse the Fund if aggregate expenses (with specified
exceptions) exceed the lesser of 1% of average annual net assets of the Fund or
25% of the total annual investment income of the Fund.
OppenheimerFunds Services (OFS), a division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and for other registered investment
companies. OFS's total costs of providing such services are allocated ratably to
these companies.
15 Oppenheimer Money Market Fund, Inc.
<PAGE>
INDEPENDENT AUDITORS' REPORT
================================================================================
The Board of Directors and Shareholders of Oppenheimer Money Market Fund, Inc.:
We have audited the accompanying statements of investments and assets and
liabilities of Oppenheimer Money Market Fund, Inc. as of December 31, 1995, and
the related statement of operations for the year then ended, the statements of
changes in net assets for each of the years in the two-year period then ended
and the financial highlights for each of the years in the ten-year period then
ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1995, by correspondence with the custodian. 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
Oppenheimer Money Market Fund, Inc. as of December 31, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the years in the two-year period then ended, and the financial highlights for
each of the years in the ten-year period then ended, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
January 22, 1996
16 Oppenheimer Money Market Fund, Inc.
<PAGE>
FEDERAL INCOME TAX INFORMATION (Unaudited)
================================================================================
In early 1996, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1995. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year ended December 31,
1995 are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
17 Oppenheimer Money Market Fund, Inc.
<PAGE>
OPPENHEIMER MONEY MARKET FUND, INC.
================================================================================
OFFICERS AND DIRECTORS
Leon Levy, Chairman of the Board of Directors
Robert G. Galli, Director
Benjamin Lipstein, Director
Bridget A. Macaskill, Director and President
Elizabeth B. Moynihan, Director
Kenneth A. Randall, Director
Edward V. Regan, Director
Russell S. Reynolds, Jr., Director
Sidney M. Robbins, Director
Donald W. Spiro, Director
Pauline Trigere, Director
Clayton K. Yeutter, Director
Carol E. Wolf, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISOR
OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR
OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
================================================================================
CUSTODIAN OF PORTFOLIO SECURITIES
Citibank, N.A.
================================================================================
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
================================================================================
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer Money Market Fund,
Inc. This report must be preceded or accompanied by a Prospectus of Oppenheimer
Money Market Fund, Inc. For material information concerning the Fund, see the
Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not
guaranteed by any bank, and are not insured by the FDIC or any other agency, and
involve investment risks, including possible loss of the principal amount
invested.
18 Oppenheimer Money Market Fund, Inc.
<PAGE>
- -----------------------
OPPENHEIMERFUNDS FAMILY
- -----------------------
================================================================================
OppenheimerFunds offers over 35 funds designed to fit virtually
every investment goal. Whether you're investing for retirement,
your children's education or tax-free income, we have the funds
to help you seek your objective.
When you invest with OppenheimerFunds, you can feel comfor-
table knowing that you are investing with a respected financial
institution with over 35 years of experience in helping people
just like you reach their financial goals. And you're investing
with a leader in global, growth stock and flexible fixed-income
investments--with over 2.8 million shareholder accounts and more
than $41 billion under Oppenheimer's management and that of our
affiliates.
At OppenheimerFunds, we don't charge a fee to exchange
shares. And you can exchange shares easily by mail or by tele-
phone.(1) For more information on Oppenheimer funds, please con-
tact your financial advisor or call us at 1-800-525-7048 for a
prospectus. You may also write us at the address shown on the
back cover. As always, please read the prospectus carefully
before you invest.
================================================================================
STOCK FUNDS Global Emerging Growth Fund Growth Fund
Enterprise Fund Global Fund
Discovery Fund Quest Global Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Target Fund Quest Value Fund
================================================================================
STOCK & BOND Main Street Income & Growth Fund Global Growth & Income Fund
FUNDS Quest Opportunity Value Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
================================================================================
BOND FUNDS International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Strategic Income Fund Limited-Term Government Fund
Champion Income Fund
================================================================================
TAX-EXEMPT California Tax-Exempt Fund(2) Pennsylvania Tax-Exempt Fund(2)
FUNDS Florida Tax-Exempt Fund(2) Tax-Free Bond Fund
New Jersey Tax-Exempt Fund(2) Insured Tax-Exempt Fund
New York Tax-Exempt Fund(2) Intermediate Tax-Exempt Fund
================================================================================
MONEY MARKET Money Market Fund Cash Reserves
FUNDS
1. Exchange privileges are subject to change or termination.
Shares may be exchanged only for shares of the same class of
eligible funds.
2. Available only to investors in certain states.
Oppenheimer funds are distributed by OppenheimerFunds
Distributor, Inc., Two World Trade Center, New York, NY
10048-0203.
-c-Copyright 1996 OppenheimerFunds, Inc. All rights reserved.
19 Oppenheimer Money Market Fund, Inc.
<PAGE>
INFORMATION
GENERAL INFORMATION
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
- --------------
1-800-525-7048
- --------------
TELEPHONE TRANSACTIONS
Monday-Friday 8:30 a.m.-8 p.m. ET
- --------------
1-800-852-8457
- --------------
PHONELINK
24 hours a day, automated
information and transactions
- --------------
1-800-533-3310
- --------------
TELECOMMUNICATIONS DEVICE
FOR THE DEAF (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
- --------------
1-800-843-4461
- --------------
OPPENHEIMERFUNDS
INFORMATION HOTLINE
24 hours a day, timely and insightful
messages on the economy and
issues that affect your investments
- --------------
1-800-835-3104
- --------------
RA0200.001.1295 February 28, 1996
- ------------------------------------------------------------------------------
"HOW MAY I HELP YOU?" [PHOTO]
Jennifer Leonard, Customer Service Representative
OppenheimerFunds Services
As an Oppenheimer funds shareholder, you have some special privileges. Whether
it's automatic investment plans, informative newsletters and hotlines, or ready
account access, you can benefit from services designed to make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling our
toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your Oppenheimer funds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer fund's transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- ------------------------------------------------------------------------------
[LOGO] OPPENHEIMERFUNDS-R- --------------
OppenheimerFunds Distributor, Inc. Bulk Rate
P.O. Box 5270 U.S. Postage
Denver, CO 80217-5270 PAID
Permit No. 314
Farmingdale, NY
--------------
