<PAGE>
- -------------------------------
Annual Report July 31, 1998
- -------------------------------
O P P E N H E I M E R
Money Market
Fund, Inc.
[GRAPHIC]
[LOGO]
OppenheimerFunds/(R)/
THE RIGHT WAY TO INVEST
<PAGE>
CONTENTS
3 President's Letter
4 An Interview
with Your Fund's
Manager
- ----------------------
8 Financial
Statements
19 Independent
Auditors' Report
- ----------------------
20 Federal
Income Tax
Information
21 Officers and
Directors
24 Information and
Services
Report Highlights
- --------------------------------------------------------------------------------
. The U.S. economy has continued to grow at a healthy pace, while the Asian
economic crisis shows no signs of improving. These two opposing forces have
kept money market yields generally stable.
- -----------------------------
CURRENT YIELD
- -----------------------------
For the 7-Day Period
Ended 7/31/98
With Without
Compounding/1/ Compounding
- -----------------------------
4.96% 4.85%
- -----------------------------
In reviewing performance, please remember that past performance does not
guarantee future results. Yields will fluctuate.
An investment in a money market fund is neither insured nor guaranteed by the
U.S. government and there can be no assurance that the fund will be able to
maintain a stable net asset value of $1.00 per share. Total returns as of
7/31/98 do not reflect substantial changes that occurred as a result of market
volatility in August and September 1998.
1. Compounded yields assume reinvestment of dividends.
2 Oppenheimer Money Market Fund, Inc.
<PAGE>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Money Market Fund, Inc.
Dear shareholder,
- --------------------------------------------------------------------------------
The performance of the financial markets over the past several months could be
viewed as "A Tale of Two Markets." Until mid-July, the excitement surrounding
the stock market's continued ascent to new record highs overshadowed the
favorable economic environment that existed for bonds: low inflation and
declining interest rates. However, since that time, stocks have declined sharply
amid heightened volatility. Yet, the bond market remains poised to benefit from
the same positive economic conditions that existed earlier in the year.
Why have stocks faltered lately? The financial crises in Asia and Russia
have negatively affected the earnings of some large U.S. corporations and have
contributed to a slow-down in U.S. economic growth. Although slower economic
growth has been negative for stocks, it should not adversely impact bonds.
That's because slower economic growth generally means fewer inflationary
pressures and less likelihood that interest rates will rise.
What should you do during this period of relative uncertainty? If you
have well-defined, long-term financial goals and an investment strategy designed
to achieve them, we encourage you to stay the course. However, if you feel your
financial plan is out-of-date or incomplete, now is the time to make improve-
ments. The best way to cope with short-term volatility is to adhere to a long-
term plan that contains proven strategies, such as diversification among various
financial markets, geographic regions, investment styles and individual
securities. A long-term plan will give you the focus and perspective you need to
put short-term volatility in its proper context.
As longstanding advocates of financial planning, we have been encouraged
by our shareholders' rational responses to the latest market events. Many of you
tell us that you have a long-term strategy in place, which includes diversifying
your investment portfolio among a number of different asset classes in
accordance with your tolerance for risk. At OppenheimerFunds, our portfolio
management teams include seasoned professionals who have encountered extreme
market volatility in the past, giving them the perspective required to address
risks and take advantage of opportunities in turbulent markets. In our view,
having a well-defined set of financial goals, a disciplined long-term strategy
and the help of experienced investment professionals are all fundamental parts
of The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
August 21, 1998
3 Oppenheimer Money Market Fund, Inc.
<PAGE>
"Remarkably,
seven years into
an economic
expansion,
U.S. inflation
is now trending
below 2%."
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How has the Fund performed over the past year?
In a period of excitement and volatility for stock markets here and abroad,
Oppenheimer Money Market Fund continued to provide stable returns. Particularly
over the last six months, yields in money market securities moved in a very
narrow range, generally between 5.50% and 5.80%. As a result, the Federal
Reserve Board (Fed), which raises and lowers short-term interest rates depending
upon the outlook for inflation or recession, remained on the side-lines. That's
because the economy continued to grow, but not fast enough to bring about
inflation.
For the fiscal year ended July 31, 1998, Oppenheimer Money Market Fund
produced a compounded annual yield of 5.01%. Without compounding, the
corresponding yield was 4.92%. The seven-day annual yields, with and without
compounding, on July 31, 1998 were 4.96% and 4.85% respectively/1/. Over the
past 12 months, the Fund maintained a stable share price of $1.00 per share,
while providing a steady stream of monthly income./2/
What economic factors impacted the portfolio?
Two opposing forces kept the Fed from raising or lowering rates, thus keeping
money market yields generally stable. On one hand, the U.S. economy continued to
grow
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
2. It is important to remember that an investment in the Fund is neither insured
nor guaranteed by the U.S. government, and there is no assurance that the Fund
will maintain a stable $1.00 share price in the future.
4 Oppenheimer Money Market Fund, Inc.
<PAGE>
at a strong pace, with the unemployment rate at just 4.5% and consumer
confidence soaring. On the other hand, the Asian financial crisis shows no signs
of easing, which has weakened global demand for goods and services. Since the
United States is a major exporter to Asia, slackening demand and devalued
currencies in the Far East have created a dampening effect on U.S. inflation.
Remarkably, seven years into an economic expansion, U.S. inflation is now
trending below 2%.
Given this scenario, how did you manage the portfolio?
Since credit quality is our first concern, we would generally not attempt to
boost the portfolio's yield by purchasing lower quality securities. In our
opinion, such an approach wouldn't be very fruitful in this strong economic
environment, because the yields between lower quality and higher quality
commercial papers are very narrow. In addition, given the financial crisis in
Asia, we continue to avoid money market securities backed by Japanese banks.
However, we believe there are still opportunities to add yield to the
portfolio without taking material credit risk. For example, we recently
purchased a security issued by a major insurance company that was offering a
slightly higher yield than the market for commercial paper. The security also
carried a "put" option, which gives us the right to sell the security back to
the issuer at the price we originally paid, should interest rates rise. The put
option is important, because without it, rising interest rates could decrease
the security's potential return.
5 Oppenheimer Money Market Fund, Inc.
<PAGE>
What is your outlook for the Fund?
During the rest of 1998 and beyond, we will continue to monitor global events so
that we can work to position the portfolio accordingly. For instance, we expect
that the effects of the Asian crisis will slow down the U.S. economy in the
coming months, which will cause the Fed to lower short-term interest rates. In
such an environment, we would generally work to lengthen the portfolio's matu-
rity to lock in higher yields. However, if the Asian crisis diminishes and the
U.S. economy remains strong, we would expect the Fed to raise short-term
interest rates in order to keep inflation in check. In that event, we would
generally keep the portfolio's average maturity short, allowing us to reinvest
more quickly at higher yields. In either case, we will continue to invest
conservatively, always keeping in mind your objectives of safety and liquidity,
part of our commitment to keep OppenheimerFunds, The Right Way to Invest.
6 Oppenheimer Money Market Fund, Inc.
<PAGE>
Financials
------------------------------------
7 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments July 31, 1998
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
<S> <C> <C>
====================================================================================================
Certificates of Deposit--4.3%
- ----------------------------------------------------------------------------------------------------
Deutsche Bank AG, 5.65%, 1/22/99 $10,000,000 $10,000,000
- ----------------------------------------------------------------------------------------------------
Lasalle National Bank, 5.61%, 9/11/98 10,000,000 10,000,000
- ----------------------------------------------------------------------------------------------------
Societe Generale:
5.54%, 8/17/98 5,000,000 4,999,777
5.76%, 10/8/98 7,000,000 6,999,033
5.77%, 10/7/98 14,500,000 14,498,920
5.87%, 9/30/98 5,000,000 5,000,151
----------
Total Certificates of Deposit 51,497,881
- ----------------------------------------------------------------------------------------------------
Direct Bank Obligations--2.6%
- ----------------------------------------------------------------------------------------------------
BankBoston, N.A., 5.63%, 11/9/98 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------------------
National Westminster Bank of Canada:
5.45%, 9/15/98 8,000,000 7,945,500
5.523%, 11/2/98 10,000,000 9,857,322
- ----------------------------------------------------------------------------------------------------
Societe Generale, 5.58%, 8/3/98/(1)/ 8,000,000 7,994,829
----------
Total Direct Bank Obligations 30,797,651
- ----------------------------------------------------------------------------------------------------
Letters of Credit--11.4%
- ----------------------------------------------------------------------------------------------------
Bank of America NT & SA, guaranteeing commercial paper of:
Formosa Plastics Corp., Series A, 5.52%, 9/17/98 10,000,000 9,927,933
Minmetals Capital & Securities, Inc., 5.50%, 1/22/99 10,000,000 9,733,442
- ----------------------------------------------------------------------------------------------------
Bank One Indiana, N.A., guaranteeing commercial paper of
Primex Funding Corp., 5.67%, 8/3/98/(1)(2)/ 4,750,000 4,750,000
- ----------------------------------------------------------------------------------------------------
Barclays Bank PLC, guaranteeing commercial paper of:
Banca Serfin SA, Institucion de Banca Multiple, Group
Financiero Serfin, 5.42%, 11/23/98 8,000,000 7,862,440
Banco Real SA, Grand Cayman Branch, Series A, 5.48%, 10/19/98 8,252,000 8,151,860
Nacionale Financiera, SNC, 5.525%, 11/19/98 5,000,000 4,915,590
Petroleo Brasileiro, SA, Petrobras II, Series C, 5.47%, 10/29/98 9,000,000 8,878,292
- ----------------------------------------------------------------------------------------------------
Bayerische Vereinsbank AG, guaranteeing commercial paper of:
Banco de Galicia y Buenos Aires SA, 5.47%, 9/18/98 5,000,000 4,963,533
Banco Mercantile Del Norte, SA, Series A, 5.33%, 10/27/98 5,000,000 4,935,596
Banco Mercantile Del Norte, SA, Series B, 5.43%, 11/24/98 10,000,000 9,826,542
Unia Banco-Uniao de Bancos Brasilieros, SA, Series C, 5.50%,
11/23/98 5,000,000 4,912,917
- ----------------------------------------------------------------------------------------------------
Credit Suisse, guaranteeing commercial paper of:
Daewoo International (America) Corp., 5.50%, 10/23/98 5,000,000 4,936,597
Daewoo International (America) Corp., 5.52%, 12/2/98 12,000,000 11,774,227
Minmetals Capitals & Securities, Inc., 5.40%, 8/24/98 21,200,000 21,125,940
- ----------------------------------------------------------------------------------------------------
Societe Generale, guaranteeing commercial paper of
PEMEX Capital, Inc., Series A:
5.51%, 11/24/98 5,000,000 4,911,993
5.52%, 10/2/98 5,000,000 4,952,467
</TABLE>
8 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
====================================================================================================
<S> <C> <C>
Letters of Credit (continued)
Swiss Bank Corp., guaranteeing commercial paper of
PEMEX Capital, Inc., 5.52%, 9/18/98 $10,000,000 $ 9,926,400
-----------
Total Letters of Credit 136,485,769
- ----------------------------------------------------------------------------------------------------
Short-Term Notes--80.8%
- ----------------------------------------------------------------------------------------------------
Asset-Backed--15.2%
Asset Backed Capital Finance, Inc.:
5.47%, 10/22/98/(3)/ 5,700,000 5,628,981
5.49%, 10/1/98/(3)/ 9,600,000 9,510,696
5.50%, 1/15/99/(3)/ 16,500,000 16,075,959
5.54%, 11/16/98/(3)/ 10,000,000 9,835,339
5.73%, 8/24/98/(1)(2)/ 6,000,000 6,000,000
- ----------------------------------------------------------------------------------------------------
Beta Finance, Inc., 5.46%, 9/28/98/(3)/ 10,000,000 9,912,033
- ----------------------------------------------------------------------------------------------------
Cooperative Assn. of Tractor Dealers, Series A, 5.50%, 8/7/98 7,800,000 7,792,850
- ----------------------------------------------------------------------------------------------------
CXC, Inc., 5.523%, 11/16/98/(3)/ 10,000,000 9,835,844
- ----------------------------------------------------------------------------------------------------
Enterprise Funding Corp.:
5.47%, 10/19/98/(3)/ 5,000,000 4,939,982
5.49%, 12/14/98/(3)/ 5,000,000 4,897,062
5.52%, 10/15/98/(3)/ 13,000,000 12,850,500
- ----------------------------------------------------------------------------------------------------
Eureka Securitization, Inc., 5.60%, 8/7/98/(3)/ 10,000,000 9,990,667
- ----------------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp., 5.49%, 2/1/99/(3)/ 10,535,000 10,239,388
- ----------------------------------------------------------------------------------------------------
RACERS, Series 1998-MM-3-5, 5.563%, 8/31/98/(1)(2)/ 10,000,000 10,000,000
- ----------------------------------------------------------------------------------------------------
Sigma Finance, Inc.:
5.395%, 8/18/98/(3)/ 5,000,000 4,987,262
5.44%, 9/10/98/(3)/ 5,000,000 4,969,778
5.45%, 9/23/98/(3)/ 5,000,000 4,959,882
5.52%, 11/9/98/(3)/ 9,000,000 8,862,000
5.52%, 1/26/99/(3)/ 14,000,000 13,617,893
- ----------------------------------------------------------------------------------------------------
SMM Trust, Series 1998 I, 5.656%, 8/29/98/(1)(2)/ 7,000,000 7,000,000
- ----------------------------------------------------------------------------------------------------
Ullswater Corp., 5.60%, 9/30/98/(3)/ 10,147,000 10,052,295
-----------
181,958,411
- ----------------------------------------------------------------------------------------------------
Automotive--4.2%
BMW US Capital Corp.:
5.505%, 9/30/98 11,000,000 10,899,075
5.70%, 8/3/98 39,300,000 39,287,555
-----------
50,186,630
- ----------------------------------------------------------------------------------------------------
Bank Holding Companies--3.0%
Corestates Capital Corp., 5.47%, 9/30/98 10,000,000 9,908,833
- ----------------------------------------------------------------------------------------------------
First Chicago Financial Corp.:
5.40%, 8/12/98 11,200,000 11,181,520
5.40%, 8/14/98 15,000,000 14,970,750
------------
36,061,103
</TABLE>
9 Oppenheimer Money Market Fund, Inc.
<PAGE>
- -------------------------------------------------------------------------------
Statement of Investments (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
====================================================================================================
<S> <C> <C>
Beverages--4.8%
Coca-Cola Enterprises, Inc.:
5.45%, 9/4/98/(3)/ $10,000,000 $ 9,948,528
5.47%, 9/1/98/(3)/ 10,000,000 9,952,897
5.47%, 10/26/98/(3)/ 10,000,000 9,869,328
5.48%, 10/28/98/(3)/ 5,000,000 4,933,022
5.50%, 12/21/98/(3)/ 10,000,000 9,783,056
5.50%, 12/23/98/(3)/ 7,000,000 6,846,000
5.53%, 9/29/98/(3)/ 6,000,000 5,945,622
-----------
57,278,453
- ----------------------------------------------------------------------------------------------------
Broker/Dealers--18.2%
Bear Stearns Cos., Inc.:
5.45%, 10/22/98 4,000,000 3,950,344
5.46%, 8/14/98 15,000,000 14,970,425
5.49%, 12/22/98 10,000,000 9,781,925
5.673%, 10/9/98/(1)/ 10,000,000 10,000,000
- ----------------------------------------------------------------------------------------------------
Goldman Sachs Group, LP:
5.652%, 9/17/98/(1)/ 5,000,000 5,000,000
5.67%, 8/3/98/(1)/ 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc.:
5.41%, 8/27/98 5,000,000 4,980,374
5.46%, 9/18/98 5,000,000 4,963,600
5.50%, 1/22/99 5,000,000 4,867,083
5.666%, 8/20/98/(1)/ 13,000,000 13,000,000
- ----------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
5.38%, 8/12/98 5,000,000 4,991,781
5.43%, 9/4/98 10,000,000 9,948,717
5.43%, 10/14/98 5,000,000 4,944,192
5.47%, 10/28/98 10,000,000 9,866,289
5.49%, 11/6/98 5,000,000 4,926,037
5.52%, 9/25/98 5,000,000 4,957,833
5.68%, 9/22/98/(1)/ 10,000,000 9,999,861
- ----------------------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co.:
5.38%, 8/17/98 10,000,000 9,976,089
5.69%, 8/3/98/(1)/ 35,000,000 35,000,000
5.788%, 9/15/98/(1)/ 7,000,000 7,000,000
- ----------------------------------------------------------------------------------------------------
Republic New York Securities Corp., 5.94%, 8/3/98/(1)/ 12,000,000 12,000,000
- ----------------------------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc.:
5.52%, 10/13/98 5,000,000 4,944,033
5.717%, 10/20/98/(1)/ 12,000,000 12,000,000
5.739%, 9/1/98/(1)/ 10,000,000 10,000,000
-----------
217,068,583
- ----------------------------------------------------------------------------------------------------
Chemicals--0.7%
Monsanto Co., 5.50%, 10/8/98 9,000,000 8,906,500
</TABLE>
10 Oppenheimer Money Market Fund, Inc.
<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
=======================================================================================================
<S> <C> <C>
Commercial Finance--4.4%
FINOVA Capital Corp.:
5.47%, 10/30/98 $ 7,000,000 $ 6,904,275
5.48%, 9/11/98 11,000,000 10,930,721
5.49%, 10/22/98 8,000,000 7,898,502
5.52%, 8/7/98 5,000,000 4,995,400
5.55%, 11/9/98 2,000,000 1,969,167
- -------------------------------------------------------------------------------------------------------
Heller Financial, Inc.:
5.58%, 11/30/98 15,000,000 14,718,675
5.70%, 10/16/98/(1)/ 5,000,000 4,999,896
-----------
52,416,636
- -------------------------------------------------------------------------------------------------------
Consumer Finance--1.4%
Beneficial Corp., 5.505%, 9/23/98 7,000,000 6,943,268
- -------------------------------------------------------------------------------------------------------
Island Finance Puerto Rico, Inc., 5.51%, 9/24/98 10,000,000 9,917,350
-----------
16,860,618
- -------------------------------------------------------------------------------------------------------
Diversified Financial--4.4%
Ford Motor Credit Co., 5.95%, 8/24/98/(1)/ 5,000,000 5,007,963
- -------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.50%, 2/19/99 13,500,000 13,083,375
5.505%, 2/1/99 5,000,000 4,859,317
- -------------------------------------------------------------------------------------------------------
Household Finance Corp.:
5.556%, 8/31/98/(1)/ 5,000,000 4,997,733
5.637%, 9/9/98/(1)/ 5,000,000 5,000,000
- -------------------------------------------------------------------------------------------------------
Prudential Funding Corp.:
5.49%, 12/9/98 10,000,000 9,801,750
5.50%, 11/18/98 10,000,000 9,833,472
-----------
52,583,610
- -------------------------------------------------------------------------------------------------------
Industrial Services--1.7%
Atlas Copco AB:
5.54%, 10/16/98/(3)/ 10,000,000 9,883,044
5.56%, 8/4/98/(3)/ 10,000,000 9,995,367
-----------
19,878,411
- -------------------------------------------------------------------------------------------------------
Insurance: Guaranteed Insurance Contracts--16.1%
AIG Life Insurance Co., 5.668%, 8/3/98/(1)(2)/ 20,000,000 20,000,000
- -------------------------------------------------------------------------------------------------------
First Allmerica Financial Life Insurance Co., 5.67%, 8/3/98/(1)/ 20,000,000 20,000,000
- -------------------------------------------------------------------------------------------------------
General American Life Insurance Co., 5.85%, 8/3/98/(1)/ 45,000,000 45,000,000
- -------------------------------------------------------------------------------------------------------
Jackson National Life Insurance Co.:
5.67%, 9/1/98/(1)/ 30,000,000 30,000,000
5.69%, 8/3/98/(1)/ 5,000,000 5,000,000
- -------------------------------------------------------------------------------------------------------
Principal Mutual Life Insurance Co., 5.70%, 8/3/98/(1)(2)/ 5,000,000 5,000,000
- -------------------------------------------------------------------------------------------------------
Protective Life Insurance Co., 5.698%, 8/3/98/(1)/ 15,000,000 15,000,000
</TABLE>
11 Oppenheimer Money Market Fund, Inc.
<PAGE>
- -------------------------------------------------------------------------------
Statement Of Investments (Continued)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
================================================================================================================
<S> <C> <C>
Insurance: Guaranteed Insurance Contracts (Continued)
Security Benefit Life Insurance Co., 5.686%, 8/15/98/(1)/ $35,000,000 $ 35,000,000
- ----------------------------------------------------------------------------------------------------------------
TransAmerica Life Insurance & Annuity Co., 5.668%, 8/3/98/(1)/ 7,000,000 7,000,000
- ----------------------------------------------------------------------------------------------------------------
Travelers Insurance Co., 5.668%, 8/3/98/(1)(2)/ 10,000,000 10,000,000
------------
192,000,000
- ----------------------------------------------------------------------------------------------------------------
Leasing & Factoring--3.1%
American Honda Finance Corp.:
5.515%, 12/2/98 10,000,000 9,811,571
5.658%, 10/9/98/(1)(3)/ 15,000,000 14,999,495
5.687%, 10/20/98/(1)(3)/ 7,000,000 7,000,000
- ----------------------------------------------------------------------------------------------------------------
Hertz Corp., 5.40%, 8/31/98 5,000,000 4,977,500
----------
36,788,566
- ----------------------------------------------------------------------------------------------------------------
Nondurable Household Goods--3.0%
Newell Co., 5.70%, 8/3/98/(3)/ 36,000,000 35,988,600
- ----------------------------------------------------------------------------------------------------------------
Oil-Integrated--0.6%
Fina Oil & Chemical Co., 5.52%, 8/14/98/(3)/ 7,000,000 6,986,047
------------
Total Short-Term Notes 964,962,168
- ----------------------------------------------------------------------------------------------------------------
Total Investments, At Value 99.1% 1,183,743,469
- ----------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.9 11,000,510
------------ --------------
Net Assets 100.0% $1,194,743,979
============ ==============
</TABLE>
Short-term notes, 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. Floating or variable rate obligation. 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 July 31, 1998. This instrument may
also have a demand feature which allows, on up to 30 days' notice, the recovery
of principal at any time, or at specified intervals not exceeding one year.
Maturity date shown represents effective maturity based on variable rate and, if
applicable, demand feature.
2. Represents a restricted security which is considered illiquid, by virtue of
the absence of a readily available market or because of legal or contractual
restrictions on resale. Such securities amount to $62,750,000, or 5.25% of the
Fund's net assets. The Fund may not invest more than 10% of its net assets
(determined at the time of purchase) in illiquid securities.
3. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $293,296,567, or 24.55% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Directors.
See accompanying Notes to Financial Statements.
12 Oppenheimer Money Market Fund, Inc.
<PAGE>
- ------------------------------------------------------------------------------
Statement of Assets and Liabilities July 31, 1998
- ------------------------------------------------------------------------------
==============================================================================
ASSETS
Investments, at value--see accompanying statement $1,183,743,469
- ------------------------------------------------------------------------------
Cash 4,255,904
- ------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 12,897,752
Interest 3,687,808
- ------------------------------------------------------------------------------
Other 88,024
--------------
Total assets 1,204,672,957
==============================================================================
LIABILITIES
Payables and other liabilities:
Shares of capital stock redeemed 7,074,830
Dividends 1,765,073
Transfer and shareholder servicing agent fees 568,711
Shareholder reports 246,506
Directors' fees--Note 1 198,416
Other 75,442
--------------
Total liabilities 9,928,978
==============================================================================
NET ASSETS $1,194,743,979
==============
==============================================================================
COMPOSITION OF NET ASSETS
Par value of shares of capital stock $ 119,489,080
- ------------------------------------------------------------------------------
Additional paid-in capital 1,075,251,943
- ------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 2,956
Net assets--applicable to 1,194,890,800 shares of --------------
capital stock outstanding $1,194,743,979
==============
- ------------------------------------------------------------------------------
Net Asset Value, Redemption Price and Offering Price Per Share $1.00
See accompanying Notes to Financial Statements.
13 Oppenheimer Money Market Fund, Inc.
<PAGE>
- ---------------------------------------------------------------------------
Statement of Operations for the Year Ended July 31, 1998
- ---------------------------------------------------------------------------
===========================================================================
INVESTMENT INCOME
Interest $64,160,000
===========================================================================
Expenses
Management fees--Note 3 4,829,036
- ---------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 3,862,585
- ---------------------------------------------------------------------------
Shareholder reports 642,642
- ---------------------------------------------------------------------------
Custodian fees and expenses 114,567
- ---------------------------------------------------------------------------
Directors' fees and expenses--Note 1 93,109
- ---------------------------------------------------------------------------
Registration and filing fees 80,565
- ---------------------------------------------------------------------------
Legal, auditing and other professional fees 53,358
- ---------------------------------------------------------------------------
Insurance expenses 14,343
- ---------------------------------------------------------------------------
Other 35,572
-----------
Total expenses 9,725,777
===========================================================================
NET INVESTMENT INCOME 54,434,223
===========================================================================
NET REALIZED GAIN ON INVESTMENTS 2,601
===========================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $54,436,824
===========
See accompanying Notes to Financial Statements.
14 Oppenheimer Money Market Fund, Inc.
<PAGE>
- ------------------------------------------------------------------------------
Statements of Changes in Net Assets
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended July 31,
1998 1997
======================================================================================================
<S> <C> <C>
OPERATIONS
Net investment income $ 54,434,223 $ 47,826,078
- ------------------------------------------------------------------------------------------------------
Net realized gain 2,601 16,805
-------------- --------------
Net increase in net assets resulting from operations 54,436,824 47,842,883
======================================================================================================
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (54,434,223) (47,826,078)
======================================================================================================
CAPITAL STOCK TRANSACTIONS
Net increase (decrease) in net assets resulting from
capital stock transactions--Note 2 180,801,221 (87,656,896)
======================================================================================================
NET ASSETS
Total increase (decrease) 180,803,822 (87,640,091)
- ------------------------------------------------------------------------------------------------------
Beginning of period 1,013,940,157 1,101,580,248
-------------- --------------
End of period $1,194,743,979 $1,013,940,157
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Money Market Fund, Inc.
<PAGE>
- ------------------------------------------------------------------------------
Financial Highlights
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended July 31, Year Ended December 31,
1998 1997 1996/(1)/ 1995 1994 1993
=========================================================================================================================
<S> <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
- -------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income and
net realized gain .05 .05 .03 .05 .04 .03
Dividends and distributions to
shareholders (.05) (.05) (.03) (.05) (.04) (.03)
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== =====
=========================================================================================================================
TOTAL RETURN/(2)/ 5.03% 4.83% 2.80% 5.40% 3.76% 2.71%
=========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $1,195 $1,014 $1,102 $818 $929 $611
- -------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,114 $1,011 $ 901 $855 $804 $653
- -------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.89% 4.73% 4.68%/(3)/ 5.19% 3.79% 2.65%
Expenses 0.87% 0.87% 0.84%/(3)/ 0.90% 0.82% 0.87%
</TABLE>
1. For the seven months ended July 31, 1996.The Fund changed its fiscal year end
from December 31 to July 31.
2. 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. Total returns reflect changes
in net investment income only.
3. Annualized.
See accompanying Notes to Financial Statements.
16 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 by
investing in "money market" securities meeting specific credit quality
standards.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
July 31, 1998, a provision of $49,467 was made for the Fund's projected benefit
obligations and payments of $9,051 were made to retired directors, resulting in
an accumulated liability of $198,416 at July 31, 1998.
The Board of Directors had adopted a deferred compensation plan for
independent Directors that enables Directors to elect to defer receipt of all or
a portion of annual fees they are entitled to receive from the Fund. Under the
plan, the compensation deferred is periodically adjusted as though an equivalent
amount had been invested for the Director in shares of one or more Oppenheimer
funds selected by the Director. The amount paid to the Director under the plan
will be determined based upon the performance of the selected funds. Deferral of
Directors' fees under the plan will not affect the net assets of the Fund, and
will not materially affect the Fund's assets, liabilities or net income per
share.
17 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. Significant Accounting Policies (Continued)
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.
- --------------------------------------------------------------------------------
2. Capital Stock
The Fund has authorized 5 billion shares of $.10 par value capital
stock.Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Year Ended July 31, 1998 Year Ended July 31, 1997
------------------------ ------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 3,091,391,757 $ 3,091,391,757 2,384,396,754 $ 2,384,396,754
Dividends and
distributions reinvested 51,650,982 51,650,982 45,124,419 45,124,419
Redeemed (2,962,241,518) (2,962,241,518) (2,517,178,069) (2,517,178,069)
-------------- --------------- -------------- --------------
Net increase (decrease) 180,801,221 $ 180,801,221 (87,656,896) $ (87,656,896)
============== =============== ============== ==============
- ------------------------------------------------------------------------------------------------------------
</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 0.45% on the first
$500 million of average annual net assets, 0.425% of the next $500 million,
0.40% of the next $500 million, and 0.375% of average annual 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.
18 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 July 31, 1998, 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 two-year period then
ended, the seven-month period ended July 31, 1996, and for each of the years in
the three-year period ended December 31, 1995. 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 July
31, 1998, 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 July 31, 1998, 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 two-year period then ended, the seven-month period
ended July 31, 1996 and for each of the years in the three-year period ended
December 31, 1995, in conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Denver, Colorado
August 21, 1998
19 Oppenheimer Money Market Fund, Inc.
<PAGE>
- -------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited)
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
In early 1999, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1998. 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 July
31, 1998, 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.
20 Oppenheimer Money Market Fund, Inc.
<PAGE>
- -------------------------------------------------------------------------------
Oppenheimer Money Market Fund, Inc.
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------------------------
Officers And Directors Leon Levy, Chairman of the Board of Directors
Donald W. Spiro,Vice Chairman of the Board of Directors
Bridget A. Macaskill, President
Robert G. Galli, Director
Benjamin Lipstein, Director
Elizabeth B. Moynihan, Director
Kenneth A. Randall, Director
Edward V. Regan, Director
Russell S. Reynolds, Jr., Director
Pauline Trigere, Director
Clayton K.Yeutter, Director
Carol E.Wolf,Vice President
Arthur J. Zimmer,Vice President
George C. Bowen,Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. 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
</TABLE>
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.
21 Oppenheimer Money Market Fund, Inc.
<PAGE>
- -------------------------------------------------------------------------------
OppenheimerFunds Family
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Real Asset Funds
- ------------------------------------------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
- ------------------------------------------------------------------------------------------------------------------------------
Global Stock Funds
- ------------------------------------------------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Quest Global Value Fund
International Small Global Fund Global Growth & Income Fund
Company Fund
- ------------------------------------------------------------------------------------------------------------------------------
Stock Funds
- ------------------------------------------------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Disciplined Value Fund
Quest Small Cap Value Fund Quest Capital Value Fund Quest Value Fund
- ------------------------------------------------------------------------------------------------------------------------------
Stock & Bond Funds
- ------------------------------------------------------------------------------------------------------------------------------
Main Street Income & Total Return Fund Disciplined Allocation Fund
Growth Fund Quest Balanced Multiple Strategies Fund
Quest Opportunity Value Fund/1/ Convertible Securities Fund/2/
Value Fund Equity Income Fund
- ------------------------------------------------------------------------------------------------------------------------------
Taxable Bond Funds
- ------------------------------------------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------
Municipal Bond Funds
- ------------------------------------------------------------------------------------------------------------------------------
California Municipal Fund/3/ Pennsylvania Municipal Fund/3/ Rochester Division:
Florida Municipal Fund/3/ Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund/3/ Insured Municipal Fund Limited Term New York
New York Municipal Fund/3/ Intermediate Municipal Fund Municipal Fund
- ------------------------------------------------------------------------------------------------------------------------------
Money Market Funds/4/
- ------------------------------------------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. On 5/18/98, the Fund's name was changed from "Quest Growth & Income Value
Fund."
2. On 4/28/98, the Fund's name was changed from "Bond Fund for Growth."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203. (C) Copyright 1998
OppenheimerFunds, Inc. All rights reserved.
22 Oppenheimer Money Market Fund, Inc.
<PAGE>
Information and services
- ------------------------------------------------------------------------------
As an Oppenheimer fund 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 or by visiting our website. 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 or website 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 infor-
mation. Of course, you can always speak to 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 funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today, or visit us at our website at www.oppenheimerfunds .com--
we're here to help.
Internet
24-hr access to account
information. Online
transactions now available
www.oppenheimerfunds.com
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
Account Transactions
Mon-Fri 8:30am-8pm ET
1-800-852-8457
PhoneLink
24-hr automated information
and automated transactions
1-800-533-3310
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm 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
[LOGO] OppenheimerFunds/(R)/
Distributor, Inc.
RA0200.001.0798 September 29, 1998
