PRESIDENT'S LETTER
Dear Shareholder:
We are very pleased to report that for the 12 months ended December
31, 1993, Dreyfus BASIC Money Market Fund was ranked NUMBER ONE and
was awarded the 1993 Performance Achievement Certificate from Lipper
Analytical Services.*
For the Fund's fiscal year ended February 28, 1994, the annualized yield
of the Dreyfus BASIC Money Market Fund was 3.33%, which is the
equivalent of an annualized effective yield of 3.38% after taking into
account the effect of compounding.** Even with historically low money
market yields, your Fund continued to grow and assets nearly reached $1.3
billion. In addition, since the Fund's inception, it has ranked among the
top-performing money market funds as reported by IBC/Donoghue's Money
Fund Report.
Throughout 1993, the Federal Reserve Board kept short-term interest
rates at very low levels to stimulate the economy, to promote new
construction, and to help improve the health of the U.S. banking system. By
the fourth quarter, improvement in these key areas was becoming evident.
Fourth quarter GDP (Gross Domestic Product) came in with a blistering
increase of 7.5%. The pace of economic activity was accelerating and
interest rates rebounded off their lows.
Reversing the trend of lower interest rates seen in recent years, the
Federal Reserve raised short-term rates by .25% (25 basis points) in early
February. The timing of the tightening caught the fixed-income market
somewhat by surprise as it was widely felt that the first tightening
action would be prompted by higher inflation indicators. Even now, the
level of core inflation, as reflected by the Consumer Price Index (CPI) and
the Producer Price Index (PPI), would not normally cause concern. The
Federal Reserve is clearly being very diligent in pursuing their anti-
inflation agenda: raising rates to defend against potential higher inflation.
It has yet to be seen whether this is the first of repeated interest rate
increases or if the Federal Reserve will wait to see the impact of this
initial tightening.
We have been purchasing securities with relatively short maturities in
order to reduce the average maturity of the Fund. This will enable the Fund
to take advantage of the higher short-term interest rate environment and
to protect the Fund against further rate increases.
We thank you for investing with Dreyfus and look forward to continuing
to serve your investment needs.
Sincerely,
(Joseph S. DiMartino Signature Logo)
Joseph S. DiMartino
President
March 14, 1994
New York, N.Y.
* Source: Lipper Analytical Services, Inc., Money Market Instruments
Category. For the 7-day period ended 3/8/94, the Fund ranked 2 out of 237
funds (First Tier Category) according to IBC/Donoghue's Money Fund
Report.
** Annualized effective yield is based upon dividends declared daily and
reinvested monthly.
+ Source: IBC/Donoghue's Money Fund Report for the reported 7-day
periods between 5/13/92 and 2/28/94. Certain Fund expenses were
absorbed during these periods without which the Fund's actual rankings
would have been lower. Yield fluctuates and past performance is no
guarantee of future results.
<TABLE>
<CAPTION>
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS FEBRUARY 28, 1994
PRINCIPAL
NEGOTIABLE BANK CERTIFICATES OF DEPOSIT-20.2% AMOUNT VALUE
-------------- --------------
<S> <C> <C>
Barclays Bank PLC (London)
3.50%, 4/5/94.............................................................. $ 5,000,000 $ 5,000,159
Industrial Bank of Japan Ltd. (Yankee)
3.45%-3.70%, 3/2/94-10/12/94............................................... 15,000,000 14,999,986
Mitsubishi Bank Ltd. (London)
3.56%, 4/29/94............................................................. 5,000,000 4,999,021
Mitsubishi Bank Ltd. (Yankee)
3.50%-3.76%, 9/23/94-12/6/94............................................... 51,000,000 51,000,000
NationsBank of North Carolina NA (London)
3.55%, 10/17/94............................................................ 10,000,000 10,000,000
Norinchukin Bank (London)
3.47%, 3/28/94............................................................. 15,000,000 14,998,449
Norinchukin Bank (Yankee)
3.47%-3.51%, 4/15/94-9/27/94............................................... 20,000,000 19,999,946
Old Kent Bank & Trust
3.50%, 10/6/94............................................................. 10,000,000 10,000,000
Rabobank Nederland NV (Yankee)
3.38%, 3/16/94............................................................. 4,500,000 4,500,220
Societe Generale (Yankee)
3.58%, 10/25/94............................................................ 10,000,000 9,998,701
Sumitomo Bank Ltd. (London)
3.10%-3.39%, 3/1/94-3/31/94................................................ 50,000,000 49,994,554
Sumitomo Bank Ltd. (Yankee)
3.65%, 4/29/94............................................................. 10,000,000 10,000,163
SwedBank (Yankee)
3.54%-3.88%, 3/14/94-1/5/95................................................ 41,000,000 41,000,000
--------------
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $246,491,199)........................................................ $ 246,491,199
==============
COMMERCIAL PAPER-38.4%
AES Shady Point Inc.
3.48%-3.49%, 3/28/94-4/11/94 (a)........................................... $ 36,427,000 $ 36,323,374
Bankers Trust New York Corp.
3.45%-3.51%, 9/15/94-10/14/94.............................................. 30,000,000 29,388,167
Bear Stearns Companies Inc.
3.49%, 4/5/94.............................................................. 10,000,000 9,966,945
Den Danske Corp. Inc.
3.36%-3.45%, 3/24/94-5/17/94............................................... 25,000,000 24,895,771
General Motors Acceptance Corp.
3.58%-3.64%, 5/17/94-6/13/94............................................... 56,000,000 55,525,933
Generale Bank Inc.
3.28%, 7/29/94............................................................. 10,000,000 9,865,417
ITT Financial Corp.
3.48%-3.50%, 4/4/94-4/5/94................................................. 45,000,000 44,850,639
Indosuez NA Inc.
3.46%, 4/5/94.............................................................. 2,000,000 1,993,292
Internationale Nederlanden (U.S.) Funding Corp.
3.42%, 5/10/94............................................................. 15,000,000 14,902,000
Lehman Brothers Holdings Inc.
3.45%, 10/24/94............................................................ 15,000,000 14,668,200
Merrill Lynch & Co. Inc.
3.28%, 3/14/94............................................................. 20,000,000 19,976,672
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994
PRINCIPAL
COMMERCIAL PAPER (CONTINUED) AMOUNT VALUE
-------------- --------------
Nordbanken N.A. Inc.
3.51%-3.63%, 3/30/94-5/2/94................................................ $ 58,000,000 $ 57,754,578
ORIX America Inc.
3.36%-3.51%, 4/1/94-5/31/94 (a,e).......................................... 26,900,000 26,714,504
Paine Webber Group Inc.
3.29%,6/13/94-6/24/94...................................................... 45,000,000 44,562,604
Spintab AB
3.21%-3.59%, 3/7/94-6/21/94................................................ 45,362,000 45,119,846
SwedBank Inc.
3.44%-3.50%, 5/24/94-8/3/94................................................ 30,000,000 29,625,611
Transamerica Finance Corp.
3.39%, 4/20/94............................................................. 650,000 646,976
--------------
TOTAL COMMERCIAL PAPER (cost $466,780,529)..................................... $ 466,780,529
==============
CORPORATE NOTES-18.9%
Abbey National Treasury Services PLC
3.40%, 6/30/94 (b,c)....................................................... $ 10,000,000 $ 10,000,000
Bear Stearns Companies Inc.
3.52%, 8/8/94 (b).......................................................... 40,000,000 40,000,000
FCC National Bank (Delaware)
3.52%, 2/22/95 (b)......................................................... 40,000,000 39,977,127
Ford Motor Credit Co.
3.77%, 12/12/94-12/23/94................................................... 15,725,000 15,933,827
General Motors Acceptance Corp.
3.73%-3.88%, 4/29/94-7/11/94............................................... 2,000,000 2,008,446
Goldman Sachs Group L.P.
3.48%, 3/1/94 (b,c)........................................................ 12,000,000 12,000,000
Lehman Brothers Holdings Inc.
3.58%, 5/19/94 (b)......................................................... 20,000,000 20,000,000
Merrill Lynch & Co. Inc.
3.43%-3.58%, 4/6/94-1/12/95 (b)............................................ 35,000,000 35,000,000
PHH Corp.
3.51%, 7/15/94-12/19/94 (b)................................................ 40,000,000 39,990,020
Philip Morris Companies Inc.
3.71%, 5/10/94............................................................. 11,650,000 11,774,921
Transamerica Finance Corp.
3.21%, 4/26/94............................................................. 3,000,000 3,029,928
--------------
TOTAL CORPORATE NOTES (cost $229,714,269)...................................... $ 229,714,269
==============
PROMISSORY NOTES-3.9%
Goldman Sachs Group L.P.
3.50%-3.75%, 3/1/94-10/17/94 (d,e)
(cost $47,000,000)......................................................... $ 47,000,000 $ 47,000,000
==============
SHORT-TERM BANK NOTES-6.9%
First National Bank of Chicago
3.51%, 10/26/94 (b)........................................................ $ 15,000,000 $ 15,000,000
NationsBank of North Carolina NA
3.46%, 8/18/94............................................................. 10,000,000 10,001,429
PNC Bank NA
3.37%-3.72%, 7/8/94-12/15/94............................................... 59,000,000 59,025,164
--------------
TOTAL SHORT-TERM BANK NOTES (cost $84,026,593)................................. $ 84,026,593
==============
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1994
PRINCIPAL
U.S. GOVERNMENT AGENCIES-6.3% AMOUNT VALUE
-------------- --------------
Federal Farm Credit Banks
Floating Rate Notes
3.25%, 5/10/95 (b)......................................................... $ 10,000,000 $ 10,000,000
Federal Home Loan Banks
Floating Rate Notes
3.58%, 1/31/97 (b)......................................................... 5,000,000 5,000,000
Federal National Mortgage Association
Discount Notes
3.54%, 10/20/94............................................................ 20,000,000 19,554,711
Federal National Mortgage Association
Floating Rate Notes
3.07%-3.64%, 10/7/94-2/14/97 (b)........................................... 39,000,000 39,012,226
Student Loan Marketing Association
Floating Rate Notes
3.62%-3.72%, 3/20/95-8/7/95 (b)............................................ 3,250,000 3,252,520
--------------
TOTAL U.S. GOVERNMENT AGENCIES (cost $76,819,457).............................. $ 76,819,457
==============
TIME DEPOSIT-.7%
Bayerische Vereinsbank AG
(Grand Cayman)
3.44%, 3/1/94
(cost $8,296,000).......................................................... $ 8,296,000 $ 8,296,000
==============
REPURCHASE AGREEMENT-4.1%
Kidder Peabody & Co., 3.40%
dated 2/28/94, due 3/1/94 in the amount of $50,004,722
(fully collateralized by $51,370,000 U.S. Treasury Bills
due from 5/19/94
to 9/22/94, value $50,574,132)
(cost $50,000,000)......................................................... $ 50,000,000 $ 50,000,000
==============
TOTAL INVESTMENTS (cost $1,209,128,047)................................. 99.4% $1,209,128,047
====== ==============
CASH AND RECEIVABLES (NET).............................................. .6% $ 7,903,503
====== ==============
NET ASSETS.............................................................. 100.0% $1,217,031,550
====== ==============
</TABLE>
NOTES TO STATEMENT OF INVESTMENTS:
(a) Backed by irrevocable letter of credit.
(b) Variable interest rate - subject to periodic change.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At February 28,
1994, these securities amounted to $22 million, or 1.8% of net assets.
(d) This note was acquired for investment, not with the intent to distribute
or sell.
(e) Securities restricted as to public resale. Investments in restricted
securities with an aggregate market value of $73,714,504, represent
approximately 6.06% of net assets:
<TABLE>
ACQUISITION PURCHASE PERCENTAGE OF
ISSUER DATE PRICE* NET ASSETS VALUATION
- ------ -------------- -------- ------------- --------------
<S> <C> <C> <C> <C>
Goldman Sachs Group L.P. 6/4/93_1/21/94 $100.00 3.86% Amortized Cost
ORIX America Inc. 10/7/93_11/24/93 98.323 2.20 Amortized Cost
* Average cost.
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value-Note 1(a).............................. $1,209,128,047
Cash....................................................................... 6,493,848
Interest receivable........................................................ 5,914,304
Prepaid expenses........................................................... 102,241
--------------
1,221,638,440
LIABILITIES:
Payable for Common Stock redeemed.......................................... $4,156,458
Accrued expenses........................................................... 450,432 4,606,890
---------- --------------
NET ASSETS..................................................................... $1,217,031,550
==============
REPRESENTED BY:
Paid-in capital............................................................ $1,217,121,735
Accumulated net realized (loss) on investments............................. (90,185)
--------------
NET ASSETS at value applicable to 1,217,121,735 shares outstanding
(3 billion shares of $.001 par value Common Stock authorized).............. $1,217,031,550
==============
NET ASSET VALUE, offering and redemption price per share
($1,217,031,550 / 1,217,121,735 shares).................................... $1.00
=====
</TABLE>
<TABLE>
STATEMENT OF OPERATIONS YEAR ENDED FEBRUARY 28, 1994
<S> <C> <C>
INVESTMENT INCOME:
INTEREST INCOME............................................................ $ 35,978,305
EXPENSES:
Management fee-Note 2(a)............................................... $5,251,503
Shareholder servicing costs-Note 2(b).................................. 1,017,299
Registration fees...................................................... 252,120
Custodian fees......................................................... 101,311
Professional fees...................................................... 52,705
Prospectus and shareholders' reports................................... 38,248
Directors' fees and expenses-Note 2(c)................................. 13,541
Miscellaneous.......................................................... 32,239
----------
6,758,966
Less-expense reimbursement from Manager due
to undertakings-Note 2(a).......................................... 5,752,120
----------
TOTAL EXPENSES................................................. 1,006,846
--------------
INVESTMENT INCOME-NET.......................................................... 34,971,459
NET REALIZED GAIN ON INVESTMENTS-Note 1(b)..................................... 2,011
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................... $ 34,973,470
==============
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS BASIC MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED FEBRUARY 28,
--------------------------------------
1993* 1994
-------------- --------------
<S> <C> <C>
OPERATIONS:
Investment income-net...................................................... $ 9,276,780 $ 34,971,459
Net realized gain (loss) on investments.................................... (92,196) 2,011
-------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... 9,184,584 34,973,470
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM;
Investment income-net...................................................... (9,139,594) (35,108,645)
-------------- --------------
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold.............................................. 1,143,214,418 1,904,044,188
Dividends reinvested....................................................... 8,580,764 32,950,757
Cost of shares redeemed.................................................... (417,591,062) (1,454,177,330)
-------------- --------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................. 734,204,120 482,817,615
-------------- --------------
TOTAL INCREASE IN NET ASSETS....................................... 734,249,110 482,682,440
NET ASSETS:
Beginning of year.......................................................... 100,000 734,349,110
-------------- --------------
End of year (including undistributed investment income-net;
$137,186 at February 28, 1993)......................................... $ 734,349,110 $1,217,031,550
============== ==============
____________________________________________
* From April 24, 1992 (commencement of operations) to February 28, 1993.
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS BASIC MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Common Stock outstanding, total investment return, ratios to average net assets
and other supplemental data for each year indicated. This information has been
derived from information provided in the Fund's financial statements.
YEAR ENDED FEBRUARY 28,
PER SHARE DATA: 1993(1) 1994
------- -------
<S> <C> <C>
Net asset value, beginning of year......................................... $1.0000 $1.0001
------- -------
INVESTMENT OPERATIONS:
Investment income-net...................................................... .0325 .0333
Net realized gain (loss) on investments.................................... (.0001) --
------- -------
TOTAL FROM INVESTMENT OPERATIONS...................................... .0324 .0333
------- -------
DISTRIBUTIONS;
Dividends from investment income-net....................................... (.0323) (.0335)
------- -------
Net asset value, end of year............................................... $1.0001 $ .9999
======= ========
TOTAL INVESTMENT RETURN 3.80%(2) 3.40%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.................................... -- .10%
Ratio of net investment income to average net assets....................... 3.66%(2) 3.33%
Decrease reflected in above expense ratios due to undertakings
by the Manager......................................................... .71%(2) .55%
Net Assets, end of year (000's Omitted).................................... $734,349 $1,217,032
</TABLE>
- -----------------------
(1) From April 24, 1992 (commencement of operations) to February 28, 1993.
(2) Annualized.
See notes to financial statements.
DREYFUS BASIC MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a diversified open-end management investment company. Dreyfus
Service Corporation ("Distributor") acts as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. The
Distributor is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager").
It is the Fund's policy to maintain a continuous net asset value per
share of $1.00; the Fund has adopted certain investment, portfolio
valuation and dividend and distribution policies to enable it to do so.
(A) PORTFOLIO VALUATION: Investments are valued at amortized cost,
which has been determined by the Fund's Board of Directors to represent
the fair value of the Fund's investments.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss
from securities transactions are recorded on the identified cost basis.
Interest income is recognized on the accrual basis. Cost of investments
represents amortized cost.
The Fund may enter into repurchase agreements with financial
institutions, deemed to be creditworthy by the Manager, subject to the
seller's agreement to repurchase and the Fund's agreement to resell such
securities at a mutually agreed upon price. Securities purchased subject
to repurchase agreements are deposited with the Fund's custodian and,
pursuant to the terms of the repurchase agreement, must have an
aggregate market value greater than or equal to the repurchase price plus
accrued interest at all times. If the value of the underlying securities
falls below the value of the repurchase price plus accrued interest, the
Fund will require the seller to deposit additional collateral by the next
business day. If the request for additional collateral is not met, or the
seller defaults on its repurchase obligation, the Fund maintains the right
to sell the underlying securities at market value and may claim any
resulting loss against the seller.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid
monthly. Dividends from net realized capital gain are normally declared
and paid annually, but the Fund may make distributions on a more frequent
basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, it is the policy of the Fund not to distribute such
gain.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such qualification is in the
best interests of its shareholders, by complying with the provisions
available to certain investment companies, as defined in applicable
sections of the Internal Revenue Code, and to make distributions of
taxable income sufficient to relieve it from all, or substantially all,
Federal income taxes.
The Fund has an unused capital loss carryover of approximately $90,000
available for Federal income tax purposes to be applied against future net
securities profits, if any realized subsequent to February 28, 1994. If not
applied, the carryover expires in fiscal 2002.
At February 28, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the
Manager, the management fee is computed at the annual rate of .50 of 1%
of the average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, brokerage,
interest on borrowings and extraordinary expenses,
DREYFUS BASIC MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
exceed the expense limitation of any state having jurisdiction over the
Fund for any full fiscal year. The most stringent state expense limitation
applicable to the Fund presently requires reimbursement of expenses in
any full fiscal year that such expenses (excluding certain expenses as
described above) exceed 2 1/2% of the first $30 million, 2% of the next
$70 million and 1 1/2% of the excess over $100 million of the average
value of the Fund's net assets in accordance with California "blue sky"
regulations. However, the Manager has currently undertaken from March 1,
1993 through March 31, 1994 or until such time as the net assets of the
Fund exceed $1.25 billion, regardless of whether they remain at that level,
to waive receipt of the management fee payable to it by the Fund. In
addition, the Manager may voluntarily assume all or part of the other
expenses of the Fund (excluding applicable shareholder transaction
charges), provided that the resulting expense reimbursement would not be
less than the amount required pursuant to the Agreement. The expense
reimbursement, pursuant to the undertaking, amounted to $5,752,120 for
the year ended February 28, 1994.
In addition, the Manager has undertaken through June 30, 1996, to
reduce the management fee paid by the Fund, to the extent that the Fund's
aggregate expenses (excluding certain expenses as described above)
exceed an annual rate of .45 of 1% of the average daily value of the Fund's
net assets.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses the Distributor an amount not to exceed an annual rate of .25
of 1% of the value of the Fund's average daily net assets for servicing
shareholder accounts. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the
year ended February 28, 1994, the Fund was charged an aggregate of
$765,742 pursuant to the Shareholder Services Plan.
(C) Certain officers and directors of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each director
who is not an "affiliated person" receives an annual fee of $1,500 and an
attendance fee of $250 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the stockholders of the Manager and of Mellon. The merger
is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
DREYFUS BASIC MONEY MARKET FUND, INC.
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS BASIC MONEY MARKET FUND, INC.
We have audited the accompanying statement of assets and liabilities
of Dreyfus BASIC Money Market Fund, Inc., including the statement of
investments, as of February 28, 1994, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of February 28, 1994 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 Dreyfus BASIC Money Market Fund, Inc. at February 28, 1994,
the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.
(ERNST & YOUNG Signature Logo)
New York, New York
April 6, 1994
(Dreyfus `D' Logo)
DREYFUS BASIC
MONEY MARKET FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
DISTRIBUTOR
Dreyfus Service Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
110 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 123AR942
(Dreyfus Logo)
BASIC
Money Market
Fund, Inc.
Annual Report
February 28, 1994
(Dreyfus Lion Logo)
