<PAGE> 1
ANNUAL REPORT JULY 31, 2000
OPPENHEIMER
MONEY MARKET FUND, INC.
[PHOTO]
[OPPENHEIMERFUNDS LOGO]
THE RIGHT WAY TO INVEST
<PAGE> 2
CONTENTS
1 President's Letter
3 An Interview with Your Fund's Manager
8 FINANCIAL STATEMENTS
21 INDEPENDENT AUDITORS' REPORT
22 Federal Income Tax Information
23 Officers and Directors
REPORT HIGHLIGHTS
--------------------------------------------------------------------------------
SPREADS BETWEEN OUR INVESTMENT UNIVERSE AND short-term U.S. Treasury securities
narrowed significantly. WE WERE ABLE TO FIND ATTRACTIVE YIELDS in asset-backed
securities.
CURRENT YIELD*
For the 7-Day Period Ended 7/31/00
Class A
With Without
Compounding Compounding
6.07% 5.90%
* SEE NOTES ON PAGE 6 FOR FURTHER DETAILS.
<PAGE> 3
[PHOTO]
BRIDGET A. MACASKILL
President
Oppenheimer
Money Market Fund, Inc.
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
DEAR SHAREHOLDER,
The 1990s, although not free of volatility, were distinguished by an overall
bull market. In contrast, the year 2000 has been characterized so far as a
relatively difficult investment environment with high levels of volatility.
As we entered the year, a vital concern weighing on investors' minds was
growing evidence of a trend toward higher inflation. While productivity
improvements and various economic forces helped keep inflation low over the last
decade, the year 2000 has seen upward pressure on wages and some prices. That's
primarily because the U.S. economy has been growing at a vigorous pace, creating
a labor shortage for businesses and high spending levels among consumers. In
response, since the summer of 1999, the Federal Reserve Board raised short-term
interest rates six times through June 30, 2000, in an attempt to forestall
inflationary pressures.
During that period, higher interest rates adversely affected many stocks
and bonds. In a dramatic decline, previously high-flying technology stocks
generally fell to more reasonable valuations. At the same time, long-neglected
value stocks began to attract investor interest. The result: narrowing of the
valuation gap between growth stocks and value stocks. Finally, in the bond
market, higher interest rates caused prices of most fixed income securities to
fall.
At OppenheimerFunds, we were not surprised by these developments, many of
which we anticipated in our recent letters to investors. What did concern us was
that, prior to the April 2000 correction, we began to see disturbing signs that
short-term trading was taking place not just in technology stocks, but also in
mutual funds. Prudent investors will understand our concern: most stock and bond
funds are carefully designed as long-term investments to help individuals and
families progress toward significant financial goals. In general, short-term
trading is risky and may compromise a well planned financial strategy. It may
also result in unforeseen adverse consequences, such as unnecessarily high tax
bills.
1 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 4
PRESIDENT'S LETTER
--------------------------------------------------------------------------------
We continue to believe that maintaining a long-term perspective and
practicing diversification are the fundamental drivers of consistent performance
over time. These strategies have helped individual investors, as well as
professional investors, weather declining markets and participate in rising
ones. On the following pages, your portfolio manager discusses the long-term
strategies and particular investment decisions that affected your fund during
the reporting period.
You can remain confident that our portfolio managers will continue to
monitor areas of opportunity in the arenas in which your fund invests, as the
effects of today's changing investment environment take hold. Knowing what's
going on in the world's economies, markets and companies--and making investment
decisions designed to try to take advantage of them over the long term--is
central to what makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ BRIDGET A. MACASKILL
Bridget A. Macaskill
August 21, 2000
THESE GENERAL MARKET VIEWS REPRESENT OPINIONS OF OPPENHEIMERFUNDS, INC.
AND ARE NOT INTENDED TO PREDICT OR DEPICT PERFORMANCE OF ANY PARTICULAR FUND.
SPECIFIC DISCUSSION, AS IT APPLIES TO YOUR FUND, IS CONTAINED IN THE PAGES THAT
FOLLOW. STOCKS AND BONDS HAVE DIFFERENT TYPES OF INVESTMENT RISKS; STOCKS ARE
SUBJECT TO MARKET VOLATILITY AND BONDS ARE SUBJECT TO CREDIT AND INTEREST RATE
RISKS.
2 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 5
AN INTERVIEW WITH YOUR FUND'S MANAGER
--------------------------------------------------------------------------------
Q HOW HAS THE FUND PERFORMED OVER THE PAST YEAR?
A. Oppenheimer Money Market Fund, Inc. which invests in certificates of
deposit, letters of credit, commercial paper and other money market instruments,
produced an annualized yield of 5.26%, and an annualized yield including the
effects of compounding of 5.39%, for the fiscal year. The Fund's seven-day and
compounded seven-day yields on July 31, 2000, were 5.90% and 6.07%,
respectively.(1) While the Fund is managed to emphasize liquidity and safety,
these returns were generally higher than those reported six months ago, due
primarily to higher short-term interest rates during the second half of the
period.
WHAT ECONOMIC FACTORS AFFECTED THE PORTFOLIO?
A series of short-term interest rate hikes initiated by the Federal Reserve
Board (the Fed) marked the fiscal year that ended July 31, 2000. Prompted by
ongoing inflation concerns, Fed Chairman Alan Greenspan took a gradual approach
to slowing an overheated domestic economy, raising rates by a quarter point on
five occasions, then concluding with a more aggressive half-point increase.
Although this measured course of action initially appeared to produce no
tangible signs of cooling, reports toward the end of the period suggested a
slight moderation in economic growth.
1. See Notes on page 6 for further details.
3 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 6
AN INTERVIEW WITH YOUR FUND'S MANAGER
--------------------------------------------------------------------------------
HOW DID YOU MANAGE THE FUND IN THIS ENVIRONMENT?
In anticipation of these higher rates, we kept our average maturity considerably
shorter than our benchmark, the imoneyNet (formerly IBC Financial) Tier 1 Money
Market Fund Index. This enabled us to respond more effectively to changing
conditions without incurring additional risk. However, because rates were rising
at fairly frequent intervals, there was unprecedented demand for securities with
shorter maturities. As supply came under pressure, spreads or differences in
yields between our investment universe and short-term U.S. Treasury securities
narrowed significantly--limiting our available investment options. In
particular, the typically higher yields of floating rate notes sank close to
Treasury levels. Whereas we had favored these variable-rate vehicles in the
past, they proved relatively unattractive throughout most of the year. Despite
these obstacles, we were able to find attractive yields in a rapidly growing
segment of the market known as asset-backed securities. These well-structured,
short-term notes secured by high-quality assets offered, on average, a
five-basis-point advantage over comparable corporate issues. In addition, they
were highly liquid, a must for a money market portfolio such as Oppenheimer
Money Market Fund, Inc. All told, asset-backed securities comprised 15.7% of net
assets as of July 31, 2000, constituting our largest area of concentration.(2)
We also emphasized compelling opportunities in fixed-rate commercial paper
issued by high-quality financial services companies, such as insurance
companies, banks and brokerage firms.
2. Based on total market value of net assets.
4 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 7
WHAT IS YOUR OUTLOOK FOR THE ECONOMY AND FOR THE FUND?
Going forward, it's unclear whether the Fed will continue to pursue a tighter
monetary policy. We believe the Fed will probably take a wait-and-see approach,
keeping a close eye on stock market performance and consumer confidence.
Although we have recently begun to purchase securities with 90-day maturities,
we currently expect to maintain the weighted average maturity of the Fund
between 30 and 45 days. Further-more, we have a large percentage of the Fund's
holdings maturing in the next few months; and, in the event of another rate
hike, this should position us to capitalize on the ensuing income opportunity.
In any event, we will continue to search for attractive yields, while
prudently keeping your objectives of safety and liquidity foremost. This is part
of our commitment to keep Oppenheimer Money Market Fund, Inc. an important part
of The Right Way to Invest.
5 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 8
NOTES
--------------------------------------------------------------------------------
IN REVIEWING PERFORMANCE, PLEASE REMEMBER THAT PAST PERFORMANCE DOES NOT
GUARANTEE FUTURE RESULTS. YIELDS WILL FLUCTUATE. AN INVESTMENT IN THE FUND IS
NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
Compounded yields assume reinvestment of dividends.
The Fund's total returns shown do not show the effects of income taxes on an
individual's investment. Taxes may reduce your actual investment returns on
income or gains paid by the Fund or any gains you may realize if you sell your
shares.
6 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 9
FINANCIALS
--------------------------------------------------------------------------------
7 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 10
STATEMENT OF INVESTMENTS July 31, 2000
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
===================================================================================
<S> <C> <C>
DIRECT BANK OBLIGATIONS--2.7%
-----------------------------------------------------------------------------------
Bank of America N.A.:
6.64%, 10/2/00 $11,000,000 $ 11,000,000
-----------------------------------------------------------------------------------
Canadian Imperial Bank of Commerce:
6.66%, 10/18/00 38,000,000 38,000,000
-------------
Total Direct Bank Obligations 49,000,000
===================================================================================
LETTERS OF CREDIT--9.9%
-----------------------------------------------------------------------------------
Abbey National plc, guaranteeing commercial
paper of Abbey National North America:
6.52%, 10/24/00 20,000,000 19,695,733
-----------------------------------------------------------------------------------
ABN Amro Bank NV, guaranteeing commercial
paper of LaSalle Bank NA:
6.78%, 8/30/00 30,000,000 30,000,000
-----------------------------------------------------------------------------------
Barclays Bank plc, guaranteeing commercial
paper of Banco del Istmo SA:
6.60%, 8/18/00 10,000,000 9,968,833
-----------------------------------------------------------------------------------
Credit Local de France, guaranteeing commercial
paper of Dexia CLF Finance Co.:
6.59%, 9/13/00(1) 20,000,000 19,842,572
6.60%, 9/15/00(1) 20,000,000 19,835,000
-----------------------------------------------------------------------------------
Credit Suisse First Boston, guaranteeing commercial
paper of Credit Suisse First Boston, Inc.:
6.60%, 9/15/00(1) 10,000,000 9,917,500
-----------------------------------------------------------------------------------
Deutsche Bank AG, guaranteeing commercial
paper of Deutsche Bank Financial, Inc.:
6.59%, 9/15/00 5,000,000 4,958,813
-----------------------------------------------------------------------------------
First Union Corp., guaranteeing commercial
paper of First Union National Bank:
6.62%, 5/17/01(2) 35,000,000 35,000,000
-----------------------------------------------------------------------------------
Keycorp, guaranteeing commercial paper
of Key Bank NA:
6.62%, 5/11/01(2) 10,000,000 9,998,449
-----------------------------------------------------------------------------------
Societe Generale, guaranteeing commercial paper
of Societe Generale North America:
6.60%, 9/8/00 20,000,000 19,860,667
-------------
Total Letters of Credit 179,077,567
===================================================================================
SHORT-TERM NOTES--87.9%
-----------------------------------------------------------------------------------
AEROSPACE/DEFENSE--2.7%
BAE Systems Holdings, Inc.:
6.59%, 9/14/00(1) 5,000,000 4,959,728
-----------------------------------------------------------------------------------
Honeywell International, Inc.:
6.63%, 11/13/00-11/17/00 44,000,000 43,144,730
-------------
48,104,458
</TABLE>
8 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 11
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
-----------------------------------------------------------------------------------
<S> <C> <C>
ASSET-BACKED--15.7%
AriesOne Metafolio Corp.:
6.58%, 8/8/00(1) $25,000,000 $ 24,968,014
-----------------------------------------------------------------------------------
Asset Backed Capital Finance, Inc.:
6.56%, 11/1/00(1) 16,000,000 15,731,769
6.63%, 9/11/00(1) 10,000,000 9,924,492
-----------------------------------------------------------------------------------
Asset Securitization Cooperative:
6.58%, 8/25/00(1) 10,000,000 9,956,133
6.60%, 9/13/00(1) 15,000,000 14,881,750
-----------------------------------------------------------------------------------
Breeds Hill Capital Co. LLC, Series A:
6.64%, 9/18/00(1) 37,000,000 36,672,427
-----------------------------------------------------------------------------------
Eureka Securitization, Inc.:
6.66%, 8/10/00(1) 19,000,000 18,968,365
-----------------------------------------------------------------------------------
Halogen Capital Co. LLC, Series A:
6.53%, 8/2/00(1) 8,000,000 7,998,549
-----------------------------------------------------------------------------------
Lexington Parker Capital Co. LLC:
6.68%, 8/25/00(1) 13,000,000 12,941,933
-----------------------------------------------------------------------------------
Moriarty Ltd.:
6.55%, 8/10/00(1) 25,000,000 24,959,062
-----------------------------------------------------------------------------------
Scaldis Capital LLC:
6.55%, 10/17/00(1) 15,701,000 15,481,033
6.62%, 9/14/00(1) 4,242,000 4,207,678
6.70%, 8/21/00(1) 11,911,000 11,866,665
-----------------------------------------------------------------------------------
Sigma Finance, Inc.:
6.61%, 9/7/00(1) 7,000,000 6,952,445
6.62%, 9/5/00(1) 5,000,000 4,967,819
6.68%, 9/1/00(1) 31,500,000 31,318,805
-----------------------------------------------------------------------------------
Variable Funding Capital Corp.:
6.61%, 9/7/00(1) 10,000,000 9,931,961
-----------------------------------------------------------------------------------
VVR Funding LLC:
6.63%, 8/4/00(1) 12,281,000 12,274,266
6.64%, 9/18/00(1) 10,711,000 10,616,172
-------------
284,619,338
-----------------------------------------------------------------------------------
AUTOMOTIVE--2.4%
DaimlerChrysler NA Holdings:
6.61%, 11/30/00 20,000,000 19,555,661
6.62%, 11/27/00 25,000,000 24,457,528
-------------
44,013,189
-----------------------------------------------------------------------------------
BANKS--0.8%
Wells Fargo Co.:
6.52%, 10/23/00 15,500,000 15,267,001
</TABLE>
9 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 12
STATEMENT OF INVESTMENTS Continued
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
-----------------------------------------------------------------------------------
<S> <C> <C>
BEVERAGES--2.5%
Coca-Cola Enterprises, Inc.:
6.52%, 10/17/00(1) $17,500,000 $ 17,255,953
6.53%, 10/26/00(1) 15,000,000 14,766,008
6.54%, 10/20/00(1) 13,000,000 12,811,067
-------------
44,833,028
-----------------------------------------------------------------------------------
BROKER/DEALERS--14.0%
Banc of America Securities LLC:
6.887%, 8/1/00(2) 50,000,000 50,000,000
-----------------------------------------------------------------------------------
Bear Stearns Cos., Inc.:
6.679%, 2/14/01(2) 13,000,000 13,000,000
6.695%, 3/1/01(2) 15,000,000 14,999,689
-----------------------------------------------------------------------------------
Bear Stearns Cos., Inc., Series B:
6.68%, 4/12/01(2) 15,000,000 15,000,000
-----------------------------------------------------------------------------------
Goldman Sachs Group LP:
6.90%, 12/4/00 24,000,000 24,000,000
6.92%, 12/6/00(3) 20,000,000 20,000,000
-----------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
6.60%, 7/5/01(2) 22,500,000 22,491,643
-----------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., Series B:
6.61%, 4/24/01(2) 20,000,000 19,997,143
-----------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co.:
6.69%, 6/8/01(2) 34,980,000 34,980,000
-----------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co., Series C:
6.91%, 3/15/01(2) 7,000,000 7,000,000
-----------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc.:
6.50%, 8/3/00 25,000,000 24,990,972
6.52%, 9/8/00 8,000,000 7,944,942
-------------
254,404,389
-----------------------------------------------------------------------------------
CHEMICALS--0.8%
BASF AG:
6.64%, 11/27/00(1) 15,000,000 14,673,533
-----------------------------------------------------------------------------------
COMMERCIAL FINANCE--4.3%
CIT Group, Inc.:
6.63%, 10/25/00 37,000,000 36,420,796
-----------------------------------------------------------------------------------
Countrywide Home Loans, Series H:
6.70%, 5/21/01(2) 32,000,000 31,997,490
-----------------------------------------------------------------------------------
Homeside Lending, Inc.:
6.53%, 10/23/00 10,000,000 9,849,447
-------------
78,267,733
</TABLE>
10 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 13
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
-----------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER SERVICES--2.7%
Block Financial Corp.:
6.57%, 8/29/00(1) $16,500,000 $ 16,415,685
6.58%, 8/18/00(1) 9,000,000 8,972,035
6.59%, 8/28/00(1) 17,000,000 16,915,977
-----------------------------------------------------------------------------------
Prudential Funding Corp.:
6.66%, 8/30/00 6,500,000 6,465,127
-------------
48,768,824
-----------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--8.5%
Associates Corp. of North America:
6.65%, 8/1/00 43,500,000 43,500,000
-----------------------------------------------------------------------------------
Ford Motor Credit Co.:
6.52%, 8/9/00 25,000,000 24,963,778
-----------------------------------------------------------------------------------
GE Capital International Funding, Inc.:
6.62%, 10/11/00(1) 15,000,000 14,804,158
-----------------------------------------------------------------------------------
General Electric Capital Corp.:
6.68%, 8/30/00 22,000,000 21,881,616
-----------------------------------------------------------------------------------
Household International, Inc.:
6.61%, 8/18/00(1) 18,100,000 18,043,503
-----------------------------------------------------------------------------------
National Rural Utilities Cooperative Finance Corp.:
6.61%, 9/14/00 10,000,000 9,919,578
6.66%, 8/17/00 20,000,000 19,940,800
-------------
153,053,433
-----------------------------------------------------------------------------------
DIVERSIFIED MEDIA--2.2%
Omnicom Finance Inc.:
6.58%, 8/23/00-8/24/00(1) 40,500,000 40,333,398
-----------------------------------------------------------------------------------
ELECTRIC UTILITIES--3.1%
Ameren Corp.:
6.53%, 8/29/00 20,000,000 19,898,422
-----------------------------------------------------------------------------------
Edison International:
6.55%, 8/31/00(1) 20,500,000 20,388,104
6.63%, 9/5/00(1) 15,000,000 14,903,313
-------------
55,189,839
-----------------------------------------------------------------------------------
INSURANCE--13.6%
Aegon Funding Corp.:
6.58%, 9/5/00(1) 6,000,000 5,961,617
6.59%, 9/8/00(1) 10,000,000 9,930,333
6.62%, 12/7/00(1) 10,000,000 9,764,622
-----------------------------------------------------------------------------------
AIG Life Insurance Co.:
6.645%, 5/31/01(2),(3) 20,000,000 20,000,000
-----------------------------------------------------------------------------------
Cooperative Assn. of Tractor Dealers, Inc., Series A:
6.63%, 9/15/00 4,200,000 4,165,193
6.64%, 9/11/00 15,700,000 15,581,273
</TABLE>
11 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 14
STATEMENT OF INVESTMENTS Continued
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
-----------------------------------------------------------------------------------
<S> <C> <C>
INSURANCE Continued
Jackson National Life Insurance Co.:
6.65%, 8/1/00(2) $ 2,000,000 $ 2,000,000
6.66%, 3/1/01(2) 30,000,000 30,000,000
-----------------------------------------------------------------------------------
Marsh USA, Inc.:
6.62%, 12/8/00(1) 20,000,000 19,525,567
-----------------------------------------------------------------------------------
Metropolitan Life Insurance Co.:
6.895%, 8/1/00(2) 33,000,000 33,000,000
-----------------------------------------------------------------------------------
Pacific Life Insurance Co.:
6.661%, 8/1/00(2,3) 20,000,000 20,000,000
-----------------------------------------------------------------------------------
Prudential Life Insurance Co.:
6.78%, 1/31/03(2) 25,000,000 25,000,000
-----------------------------------------------------------------------------------
Teachers Insurance & Annuity Assn. of America:
6.62%, 8/1/00(1) 41,000,000 41,000,000
-----------------------------------------------------------------------------------
Travelers Insurance Co.:
6.704%, 10/5/00(2,3) 10,000,000 10,000,000
--------------
245,928,605
-----------------------------------------------------------------------------------
LEASING & FACTORING--2.3%
American Honda Finance Corp.:
6.613%, 8/16/00(2),(4) 22,000,000 21,996,471
6.636%, 8/16/00(2),(4) 20,000,000 19,998,985
--------------
41,995,456
-----------------------------------------------------------------------------------
MANUFACTURING--2.4%
Eaton Corp.:
6.63%, 8/30/00(1) 10,000,000 9,946,592
6.70%, 11/8/00-11/9/00(1) 34,500,000 33,859,685
--------------
43,806,277
-----------------------------------------------------------------------------------
OIL: DOMESTIC--1.4%
Motiva Enterprises LLC:
6.54%, 10/26/00 25,000,000 24,609,417
-----------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL--2.7%
Forrestal Funding Master Trust, Series 1999-A:
6.60%, 8/11/00(4) 10,000,000 9,981,667
-----------------------------------------------------------------------------------
KZH-KMS Corp.:
6.54%, 8/16/00-8/23/00(1) 38,863,000 38,731,012
--------------
48,712,679
</TABLE>
12 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 15
<TABLE>
<CAPTION>
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
--------------------------------------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATIONS-TECHNOLOGY--4.7%
Alcatel SA:
6.57%, 8/7/00(1) $15,000,000 $ 14,983,575
6.60%, 9/7/00(1) 5,000,000 4,966,083
--------------------------------------------------------------------------------------
SBC Communications, Inc.:
6.55%, 8/3/00(1) 20,000,000 19,992,722
--------------------------------------------------------------------------------------
Vodafone Air Touch plc-MTC:
6.54%, 8/9/00(1) 5,000,000 4,992,733
6.862%, 6/5/01(2),(3) 40,000,000 39,997,003
---------------
84,932,116
--------------------------------------------------------------------------------------
TELEPHONE UTILITIES--1.1%
AT&T Corp.:
6.752%, 7/13/01(1),(2) 20,500,000 20,500,000
---------------
Total Short-Term Notes 1,592,012,713
--------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 100.5% 1,820,090,280
--------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (0.5) (8,481,358)
------------------------------
NET ASSETS 100.0% $1,811,608,922
==============================
</TABLE>
Footnotes to Statements of Investments
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. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $763,691,837, or 42.16% of
the Fund's net assets, and have been determined to be liquid pursuant to
guidelines adopted by the Board of Directors.
2. Represents the current interest rate for a variable or increasing rate
security.
3. Identifies issues considered to be illiquid or restricted--See Note 4 of
Notes to Financial Statements.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities
have been determined to be liquid under guidelines established by the Board of
Directors. These securities amount to $51,977,123 or 2.87% of the Fund's net
assets as of July 31, 2000.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 16
STATEMENT OF ASSETS AND LIABILITIES July 31, 2000
<TABLE>
<S> <C>
===================================================================================
ASSETS
-----------------------------------------------------------------------------------
Investments, at value--see accompanying statement $ 1,820,090,280
-----------------------------------------------------------------------------------
Cash 3,307,662
-----------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 16,181,452
Interest 3,663,858
Other 285,986
-----------------
Total assets 1,843,529,238
===================================================================================
LIABILITIES
-----------------------------------------------------------------------------------
Payables and other liabilities:
Shares of capital stock redeemed 28,193,698
Dividends 2,261,931
Transfer and shareholder servicing agent fees 805,252
Directors' compensation 240,371
Other 419,064
-----------------
Total liabilities 31,920,316
===================================================================================
NET ASSETS $ 1,811,608,922
=================
===================================================================================
COMPOSITION OF NET ASSETS
-----------------------------------------------------------------------------------
Par value of shares of capital stock $ 181,171,625
-----------------------------------------------------------------------------------
Additional paid-in capital 1,630,394,848
-----------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 42,449
-----------------
NET ASSETS (applicable to 1,811,716,250 shares of capital
stock outstanding) $ 1,811,608,922
=================
===================================================================================
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00
================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 17
STATEMENT OF OPERATIONS For the Year Ended July 31, 2000
<TABLE>
<S> <C>
===================================================================================
INVESTMENT INCOME
-----------------------------------------------------------------------------------
Interest $103,538,643
===================================================================================
EXPENSES
-----------------------------------------------------------------------------------
Management fees 7,172,648
-----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 4,623,944
-----------------------------------------------------------------------------------
Shareholder reports 905,870
-----------------------------------------------------------------------------------
Custodian fees and expenses 105,209
-----------------------------------------------------------------------------------
Directors' compensation 105,068
-----------------------------------------------------------------------------------
Other 403,290
-------------
Total expenses 13,316,029
-------------
Less expenses paid indirectly (26,930)
-------------
Net expenses 13,289,099
===================================================================================
NET INVESTMENT INCOME 90,249,544
===================================================================================
NET REALIZED GAIN ON INVESTMENTS 106
===================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 90,249,650
=============
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 18
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
YEAR ENDED JULY 31, 2000 1999
============================================================================================
<S> <C> <C>
OPERATIONS
--------------------------------------------------------------------------------------------
Net investment income $ 90,249,544 $ 61,850,009
--------------------------------------------------------------------------------------------
Net realized gain 106 39,387
------------------------------------
Net increase in net assets resulting from operations 90,249,650 61,889,396
============================================================================================
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS (90,249,544) (61,850,009)
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
============================================================================================
CAPITAL STOCK TRANSACTIONS
Net increase in net assets resulting from
beneficial interest transactions 315,163,290 301,662,160
============================================================================================
NET ASSETS
--------------------------------------------------------------------------------------------
Total increase 315,163,396 301,701,547
--------------------------------------------------------------------------------------------
Beginning of period 1,496,445,526 1,194,743,979
------------------------------------
End of period $1,811,608,922 $1,496,445,526
====================================
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 19
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR YEAR
ENDED ENDED
JULY 31, DEC. 31,
2000 1999 1998 1997 1996(1) 1995
========================================================================================================================
<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 .05 .05 .03 .05
Dividends and/or distributions to shareholders (.05) (.05) (.05) (.05) (.03) (.05)
------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $1.00
======================================================================
========================================================================================================================
TOTAL RETURN(2) 5.38% 4.61% 5.03% 4.83% 2.80% 5.40%
------------------------------------------------------------------------------------------------------------------------
========================================================================================================================
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $1,812 $1,496 $1,195 $1,014 $1,102 $818
------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,712 $1,371 $1,114 $1,011 $ 901 $855
------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 5.27% 4.51% 4.89% 4.73% 4.68% 5.19%
Expenses 0.78% 0.78% 0.87%(4) 0.87%(4) 0.84%(4) 0.90%(4)
</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 $1,000 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 for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 20
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 an 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.
--------------------------------------------------------------------------------
SECURITIES VALUATION. Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
--------------------------------------------------------------------------------
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' COMPENSATION. The Fund has adopted an unfunded retirement plan for
the Fund's independent Board of 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, 2000, a provision of $35,213 was made for the Fund's
projected benefit obligations and payments of $9,279 were made to retired
directors, resulting in an accumulated liability of $222,731 as of July 31,
2000.
The Board of Directors has adopted a deferred compensation plan for
independent directors that enables directors to elect to defer receipt of all
or a portion of annual compensation 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 Board of Directors in shares of one
or more Oppenheimer funds selected by the director. The amount paid to the
Board of Directors 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 investment income per share.
--------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
--------------------------------------------------------------------------------
EXPENSE OFFSET ARRANGEMENTS. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
18 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 21
--------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for as of 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, 2000 YEAR ENDED JULY 31, 1999
SHARES AMOUNT SHARES AMOUNT
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 5,480,169,730 $ 5,480,169,730 3,609,705,072 $ 3,609,705,072
Dividends and/or
distributions reinvested 85,045,783 85,045,783 58,739,770 58,739,770
Redeemed (5,250,052,223) (5,250,052,223) (3,366,782,682) (3,366,782,682)
-------------------------------------------------------------------------
Net increase 315,163,290 $ 315,163,290 301,662,160 $ 301,662,160
=========================================================================
</TABLE>
================================================================================
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. 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% of 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 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. The Fund's management fee for the year ended July 31, 2000,
was an annualized rate of 0.42%, before any waiver by the Manager if
applicable.
--------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund on
an "at-cost" basis. OFS also acts as the transfer and shareholder servicing
agent for the other Oppenheimer funds.
19 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS CONTINUED
================================================================================
4. ILLIQUID OR RESTRICTED SECURITIES
As of July 31, 2000, investments in securities included issues that are illiquid
or restricted. Restricted securities are often purchased in private placement
transactions, are not registered under the Securities Act of 1933, may have
contractual restrictions on resale, and are valued under methods approved by the
Board of Trustees as reflecting fair value. A security may also be considered
illiquid if it lacks a readily available market or if its valuation has not
changed for a certain period of time. The Fund intends to invest no more than
10% of its net assets (determined at the time of purchase and reviewed
periodically) in illiquid or restricted securities. Certain restricted
securities, eligible for resale to qualified institutional investors, are not
subject to that limitation. The aggregate value of illiquid or restricted
securities subject to this limitation as of July 31, 2000 was $109,997,003,
which represents 6.07% of the Fund's net assets, of which $10,000,000 is
considered restricted. Information concerning restricted securities is as
follows:
<TABLE>
<CAPTION>
VALUATION
PER UNIT AS OF
SECURITY ACQUISITION DATE COST PER UNIT JULY 31, 2000
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM NOTES
Travelers Insurance Co., 6.704%, 10/5/00 10/1/99 $1.00 $1.00
</TABLE>
20 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 23
INDEPENDENT AUDITORS' REPORT
================================================================================
THE BOARD OF DIRECTORS AND SHAREHOLDERS OF
OPPENHEIMER MONEY MARKET FUND, INC.:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Money Market Fund, Inc. as of July
31, 2000, 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 four-year
period then ended, the seven-month period ended July 31, 1996, and the year
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 auditing standards generally
accepted in the United States of America. 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, 2000, 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, 2000, 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 four-year period then ended, the
seven-month period ended July 31, 1996, and the year ended December 31, 1995, in
conformity with accounting principles generally accepted in the United States of
America.
KPMG LLP
Denver, Colorado
August 21, 2000
21 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 24
FEDERAL INCOME TAX INFORMATION UNAUDITED
================================================================================
In early 2001 shareholders will receive information regarding all dividends and
distri-butions paid to them by the Fund during calendar year 2000. 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 year ended July 31,
2000, 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.
22 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 25
OPPENHEIMER MONEY MARKET FUND, INC.
================================================================================
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
Clayton K. Yeutter, Director
Carol E. Wolf, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
INVESTMENT ADVISOR OppenheimerFunds, Inc.
================================================================================
DISTRIBUTOR OppenheimerFunds Distributor, Inc.
================================================================================
TRANSFER AND SHAREHOLDER OppenheimerFunds Services
SERVICING AGENT
================================================================================
CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
================================================================================
INDEPENDENT AUDITORS KPMG LLP
================================================================================
LEGAL COUNSEL Mayer, Brown & Platt
This is a copy of a report to shareholders of
Oppenheimer Money Market Fund, Inc. For other
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, ARE NOT INSURED BY THE FDIC OR ANY
OTHER AGENCY, AND INVOLVE INVESTMENT RISKS,
INCLUDING THE POSSIBLE LOSS OF THE PRINCIPAL
AMOUNT INVESTED.
OPPENHEIMER FUNDS ARE DISTRIBUTED BY
OPPENHEIMERFUNDS DISTRIBUTOR, INC., TWO WORLD
TRADE CENTER, NEW YORK, NY 10048-0203.
(C) Copyright 2000 OppenheimerFunds, Inc. All
rights reserved.
23 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 26
OPPENHEIMER FUNDS FAMILY
<TABLE>
<S> <C> <C>
===========================================================================================================
GLOBAL EQUITY
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
===========================================================================================================
EQUITY
Stock Stock & Bond
Enterprise Fund(1) Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Trinity Growth Fund Specialty
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
===========================================================================================================
FIXED INCOME
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund Main Street(R) California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
===========================================================================================================
MONEY MARKET(4)
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
3. Available to investors only 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.
24 OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE> 27
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
INTERNET
24-hr access to account information and transactions(1)
www.oppenheimerfunds.com
--------------------------------------------------------------------------------
GENERAL INFORMATION
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
--------------------------------------------------------------------------------
TELEPHONE TRANSACTIONS
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
--------------------------------------------------------------------------------
PHONELINK
24-hr automated information and automated transactions
1.800.533.3310
--------------------------------------------------------------------------------
TELECOMMUNICATIONS DEVICE FOR THE DEAF (TDD)
Mon-Fri 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------------------------
OPPENHEIMERFUNDS MARKET HOTLINE
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
--------------------------------------------------------------------------------
TRANSFER AND SHAREHOLDER SERVICING AGENT
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
--------------------------------------------------------------------------------
Ticker Symbol Class A: OMBXX
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
[OPPENHEIMERFUNDS LOGO]
RA0200.001.0700 September 29, 2000
