YEAR 2000 ISSUES (UNAUDITED)
The fund could be adversely affected if the computer systems used by The
Dreyfus Corporation and the fund' s other service providers do not properly
process and calculate date-related information from and after January 1, 2000.
The Dreyfus Corporation is working to avoid Year 2000-related problems in its
systems and to obtain assurances from other service providers that they are
taking similar steps. In addition, issuers of securities in which the fund
invests may be adversely affected by Year 2000-related problems. This could have
an impact on the value of the fund's investments and its share price.
DREYFUS BASIC MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
Dear Shareholder:
We are pleased to report the performance for Dreyfus BASIC Money Market Fund,
Inc. for the 12-month period ended February 28, 1999. For the period, your fund
produced an annualized yield of 5.08% and, after taking into account the effect
of compounding, an annualized effective yield of 5.20%.*
ECONOMIC REVIEW
The American economy in the period ended February 28, 1999 had several
persistent themes. These included weakness in the world economy, strength in the
U.S., pervasive disinflation and action by central banks to lower interest rates
in many parts of the world.
Weakness in the world economy started in Asia with economic and financial
stresses throughout most of that continent. While China was able to generate
economic expansion by government spending, economic declines occurred in most of
the rest of Asia. The most severe phase occurred when Asian currencies dropped
and short-term interest rates rose. Tentative signs of a bottoming of the crises
in Asia had emerged by the end of your fund's fiscal year. However, Latin
America had begun to weaken in the aftermath of Brazilian economic weakness.
Europe was full of optimism about the benefits of currency unification into
the Euro as of year-end 1998. The reality was that economic growth in Europe
began 1998 at a modest pace and showed signs of stagnation by year-end. Even so,
the new European central bank postponed any reduction in interest rates in early
1999, probably because of a desire to build anti-inflationary credibility.
The U.S. economy over the last year grew at an impressively high rate despite
the economic weakness overseas. A major reason for this was that the negative
effects of foreign economic weakness on the traditional industrial sector were
offset by positive effects elsewhere in the economy. Low inflation and low
interest rates stimulated the housing and consumer sectors, while the technology
sector continued to expand.
The Federal Reserve Board eased monetary policy three times beginning on
September 30, 1998, lowering the Federal Funds rate from 5.50% to 4.75%. This
was not because of any shortfall in U.S. economic growth. Rather, it was a
response to the financial stresses that started with the Russian default in the
summer of 1998 and culminated in the liquidity crisis of an overleveraged hedge
fund in the September/October period. Despite widespread fears, the U.S. economy
never did slow. Long-term interest rates declined into early October, when fears
of financial crisis, deflation and possible economic recession were at their
greatest. However, long-term rates then drifted higher as the financial stresses
eased and the feared economic slowdown did not materialize.
THE MARKET ENVIRONMENT/PORTFOLIO FOCUS
The economic forces described above drove down interest rates in late summer
and early fall. Later in the year, there was a modest increase in rates. One of
its effects was to change the yield curve back to a more normal pattern in which
longer term yields exceed those of shorter term instruments.
A flight to safety by global investors was the force that most affected the
U.S. money market. More recently, as the domestic economy continued to
demonstrate exceptional strength in spite of turmoil abroad, rates edged higher.
One factor affecting the U.S. interest rates has been the rise in interest rates
in Japan. This has brought about some repatriation of investment funds to that
country. In addition, the introduction of the Euro currency at the start of the
new year, which was initially well received, put some downward pressure on the
U.S. dollar and, conversely, upward pressure on yields.
Generally, the main influences now on short-term rates seem to be underlying
economic factors rather than the fear that gripped many investors last fall.
With the domestic economy continuing to expand without visible inflationary
pressures, the Federal Reserve appears to be in a wait-and-see mode, with no
immediate plans for major policy changes. As long as this scenario continues,
the money market should remain stable.
Therefore, in an attempt to maximize yields, we will continue to maintain an
average portfolio maturity longer than the industry average.
As always, we will maintain a close watch on market developments in case some
adjustments are required in our investment strategies.
Very truly yours,
[Patricia A. Larkin signature]
Patricia A. Larkin
Senior Portfolio Manager
March 18, 1999
New York, N.Y.
* Annualized effective yield is based upon dividends declared daily and
reinvested monthly. There is no assurance that a money market fund will be able
to maintain a stable net asset value of $1.00 per share. Yield fluctuates.
DREYFUS BASIC MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS FEBRUARY 28, 1999
<TABLE>
Principal
Negotiable Bank Certificates of Deposit--22.6% Amount Value
- ------------------------------------------------------- ______________ ______________
<S> <C> <C>
Abbey National Treasury Service (Yankee)
5.20%, 12/9/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000 $ 15,000,000
ABN-AMRO Bank N.V.
5.01%, 11/17/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,986,201
Bank Austria AG
5.13%, 2/18/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 39,985,047
Bayerische Landesbank
5.75%, 5/6/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,997,221
Credit Agricole Indosuez S.A. (Yankee)
4.87%-5.80%, 5/21/1999-5/26/1999 (a) . . . . . . . . . . . . . . . . . . . . . . . . . 45,000,000 44,992,340
Credit Suisse
5%, 3/17/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,001,135
Deutsche Bank AG (Yankee)
5.14%-5.73%, 3/9/1999-2/22/2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000,000 74,985,559
Istituto Bancario San Paolo DiTorino (Yankee)
5.75%, 7/20/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,994,454
Societe Generale (Yankee)
5.76%-5.84%, 4/6/1999-5/28/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000,000 79,990,582
SwedBank (Yankee)
5.73%-5.79%, 3/26/1999-6/14/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000,000 54,997,684
_______________
TOTAL NEGOTIABLE BANK CERTIFICATES OF DEPOSIT
(cost $414,930,223) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 414,930,223
_______________
Commerical Paper--36.7%
- -------------------------------------------------------
Associated Corp. of North America
4.80%, 3/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000,000 $ 50,000,000
BankAmerica Corp.
5.10%, 5/13/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,748,049
Canadian Imperial Holdings Inc.
5.04%, 6/28/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,187,660
Chrysler Financial Co. LLC
4.96%-5.01%, 4/13/1999-4/16/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,000,000 81,504,019
Den Danske Corp. Inc.
4.95%, 8/25/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,406,313
Den Norske Bank ASA
4.89%-4.91%, 7/7/1999-7/14/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000,000 68,765,066
Equilon Enterprises LLC
5.16%, 3/25/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,915,167
Fina Oil & Chemical Co.
4.98%, 4/12/1999 (b,c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,942,600
Finova Capital Corp.
5.39%, 3/19/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 19,947,000
DREYFUS BASIC MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1999
Principal
Commercial Paper (continued)
Amount Value
- ------------------------------------------------------- ______________ ______________
General Electric Capital Corp.
5.23%, 3/19/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000 $ 14,961,450
General Electric Capital Services Inc.
5%-5.05%, 4/21/1999-5/12/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,698,275
Goldman Sachs Group L.P.
5.01%, 5/28/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 9,880,222
Hertz Corp.
4.91%-5.07%, 5/14/1999-6/18/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000,000 78,954,289
Lehman Brothers Holdings, Inc.
5.40%, 8/5/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 48,853,028
Morgan (J.P.) & Co.
4.91%, 4/21/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,660,708
Spintab AB
5.08%-5.09%, 6/22/1999-6/30/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,195,653
Swedbank Inc.
5.09%, 4/13/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 34,792,644
_______________
TOTAL COMMERCIAL PAPER
(cost $674,412,143) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 674,412,143
_______________
Corporate Notes--19.9%
- -------------------------------------------------------
Bankers Trust N.Y. Co.
4.87%, 4/9/1999 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,000,000 $ 29,998,762
Bear Stearns Companies Inc.
4.85%-5.02%, 4/16/1999-2/22/2000 (a) . . . . . . . . . . . . . . . . . . . . . . . . . 46,000,000 46,011,209
CIT Group Holdings, Inc.
4.88%-4.97%, 9/29/1999-11/2/1999 (a) . . . . . . . . . . . . . . . . . . . . . . . . . 70,000,000 69,986,018
Heller Financial Inc.
5%, 9/8/1999 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 35,000,000
Istituto Bancario San Paolo DiTorino
4.88%, 4/19/1999 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000,000 49,997,079
Merrill Lynch & Co. Inc.
4.87%, 4/19/1999 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
PNC Bank N.A.
4.86%, 6/11/1999 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000,000 79,984,351
Paine Webber Group Inc.
4.95%, 4/22/1999 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000,000 10,000,000
Salomon Smith Barney Holdings Inc.
4.86%, 4/19/1999 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000,000 40,000,000
_______________
TOTAL CORPORATE NOTES
(cost $365,977,419) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 365,977,419
_______________
DREYFUS BASIC MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF INVESTMENTS (CONTINUED) FEBRUARY 28, 1999
Principal
Promissory Notes--3.8% Amount Value
- ------------------------------------------------------- ______________ ______________
Goldman Sachs Group L.P.
5.06%-5.11%, 7/29/1999-11/9/1999 (b,c)
(cost $70,000,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 70,000,000 $ 70,000,000
_______________
Short-Term Bank Notes--10.7%
- -------------------------------------------------------
Abbey National PLC
5.80%, 6/11/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 $ 4,998,930
Bank of America NT & SA
5.13%, 3/29/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000,000 20,000,000
BankBoston N.A.
5.64%, 4/16/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,999,459
Key Bank N.A.
4.92%-5.17%, 10/15/1999-3/24/2000 (a) . . . . . . . . . . . . . . . . . . . . . . . . . 86,000,000 86,007,140
LaSalle National Bank
5.23%, 3/17/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000,000 35,000,000
South Trust N.A.
4.86%, 7/6/1999 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000,000 24,994,905
_______________
TOTAL SHORT-TERM BANK NOTES
(cost $196,000,434) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 196,000,434
_______________
Time Deposits--4.8%
- -------------------------------------------------------
Berliner Handels und Frankforter Bank (Grand Cayman)
4.85%, 3/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000,000 $ 50,000,000
Republic National Bank of New York (London)
4.81%, 3/1/1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,384,000 38,384,000
_______________
TOTAL TIME DEPOSITS
(cost $88,384,000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 88,384,000
_______________
TOTAL INVESTMENTS (cost $1,809,704,219). . . . . . . . . . . . . . . . . . . . . 98.5% $1,809,704,219
_______ _______________
CASH AND RECEIVABLES (NET) . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5% $ 27,959,938
_______ _______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% $1,837,664,157
_______ _______________
Notes to Statement of Investments:
- -----------------------------------------------------------------------------
(a) Variable interest rate-subject to periodic change.
(b) These notes were acquired for investment, not with the intent to distribute
or sell.
(c) Securities restricted as to public resale. These securities were acquired
from 11/5/98-2/12/99 at a cost of $9,878,367 for Fina Oil & Chemical Co.
and $70,000,000 for Goldman Sachs Group L.P. At February 28,1999, the
aggregate value of these securities is $79,942,600 representing
approximately 4.35% of net assets and are valued at amortized cost.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS BASIC MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 28, 1999
Cost Value
_______________ _______________
<S> <C> <C>
ASSETS: Investments in securities--See Statement of Investments . . $1,809,704,219 $1,809,704,219
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . 10,345,290
Interest receivable . . . . . . . . . . . . . . . . . . . 18,485,148
_______________
1,838,534,657
_______________
LIABILITIES: Due to The Dreyfus Corporation and affiliates . . . . . . 439,664
Accrued expenses . . . . . . . . . . . . . . . . . . . . 430,836
_______________
870,500
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,837,664,157
_______________
REPRESENTED BY: Paid-in capital . . . . . . . . . . . . . . . . . . . . . $1,837,774,031
Accumulated undistributed investment income--net . . . . 466,281
Accumulated net realized gain (loss) on investments . . . (576,155)
_______________
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,837,664,157
_______________
SHARES OUTSTANDING
(3 billion shares of $.001 par value Common Stock authorized). . . . . . . . . . . . . . . 1,837,774,031
NET ASSET VALUE, offering and redemption price per share . . . . . . . . . . . . . . . . . $1.00
______
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS BASIC MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS YEAR ENDED FEBRUARY 28, 1999
INVESTMENT INCOME
<S> <C> <C>
INCOME Interest Income . . . . . . . . . . . . . . . . . $99,114,363
EXPENSES: Management fee--Note 2(a) . . . . . . . . . . . . $ 8,958,381
Shareholder servicing costs--Note 2(b) . . . . . 1,055,882
Registration fees . . . . . . . . . . . . . . . . 133,381
Custodian fees . . . . . . . . . . . . . . . . . 128,192
Professional fees . . . . . . . . . . . . . . . . 48,123
Prospectus and shareholders' reports . . . . . . 35,099
Directors' fees and expenses--Note 2(c) . . . . . 24,869
Miscellaneous . . . . . . . . . . . . . . . . . . 20,315
___________
Total Expenses . . . . . . . . . . . . 10,404,242
Less--reduction in management fee due to
undertaking--Note 2(a) . . . . . . . . . . . . (2,340,179)
___________
Net Expenses . . . . . . . . . . . . . 8,064,063
____________
INVESTMENT INCOME--NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,050,300
NET REALIZED GAIN (LOSS) ON INVESTMENTS--Note 1(b) . . . . . . . . . . . . . . . . (10,215)
____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $91,040,085
____________
____________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS BASIC MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
Year Ended Year Ended
February 28, 1999 February 28, 1998
__________________ __________________
<S> <C> <C>
OPERATIONS:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 91,050,300 $ 93,230,366
Net realized gain (loss) on investments . . . . . . . . . . . . . . . . . . . (10,215) (74,821)
__________________ __________________
Net Increase (Decrease) in Net Assets Resulting from Operations . . . . . 91,040,085 93,155,545
__________________ __________________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net . . . . . . . . . . . . . . . . . . . . . . . . . . . . (90,832,870) (92,981,515)
__________________ __________________
CAPITAL STOCK TRANSACTIONS ($1.00 per share):
Net proceeds from shares sold . . . . . . . . . . . . . . . . . . . . . . . . 1,895,302,928 2,048,718,827
Dividends reinvested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,757,851 87,421,489
Cost of shares redeemed . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,868,574,753) (2,205,335,475)
__________________ __________________
Increase (Decrease) in Net Assets from Capital Stock Transactions . . . . 112,486,026 (69,195,159)
__________________ __________________
Total Increase (Decrease) in Net Assets . . . . . . . . . . . . . . . . 112,693,241 (69,021,129)
NET ASSETS:
Beginning of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,724,970,916 1,793,992,045
__________________ __________________
End of Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,837,664,157 $1,724,970,916
__________________ __________________
Undistributed investment income--net . . . . . . . . . . . . . . . . . . . . . . $ 466,281 $ 248,851
__________________ __________________
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<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 period indicated. This information has been
derived from the Fund's financial statements.
Fiscal Year Ended February,
___________________________________________________________
PER SHARE DATA: 1999 1998 1997 1996 1995
______ ______ ______ ______ ______
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______
Investment Operations:
Investment income--net . . . . . . . . . . . . . . . .051 .053 .051 .058 .046
______ ______ ______ ______ ______
Distributions:
Dividends from investment income--net . . . . . . . . (.051) (.053) (.051) (.058) (.046)
______ ______ ______ ______ ______
Net asset value, end of period . . . . . . . . . . . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
______ ______ ______ ______ ______
TOTAL INVESTMENT RETURN. . . . . . . . . . . . . . . . . 5.19% 5.38% 5.19% 5.97% 4.73%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets . . . . . 45% .45% .45% .31% .18%
Ratio of net investment income
to average net assets . . . . . . . . . . . . . . . 5.08% 5.28% 5.08% 5.82% 4.70%
Decrease reflected in above expense ratios
due to undertakings by the Manager . . . . . . . . .13% .24% .23% .31% .46%
Net Assets, end of period (000's Omitted) . . . . $1,837,664 $1,724,971 $1,793,992 $2,098,292 $1,623,242
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS BASIC MONEY MARKET FUND, INC.
- -----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus BASIC Money Market Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940, as amended (the "Act"), as a diversified
open-end management investment company. The Fund's investment objective is to
provide investors with as high a level of current income as is consistent with
the preservation of capital and the maintenance of liquidity. The Dreyfus
Corporation (the "Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N. A. Premier Mutual Fund Services, Inc.
is the distributor of the Fund's shares, which are sold to the public without a
sales charge.
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. There is no assurance, however,
that the Fund will be able to maintain a stable net asset value per share of
$1.00.
The Fund' s financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates.
(A) PORTFOLIO VALUATION: Investments in securities 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.
Under the terms of the custody agreement, the Fund received net earnings credits
of $20,740 during the period ended February 28, 1999 based on available cash
balances left on deposit. Income earned under this arrangement is included in
interest income.
(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, if any, 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 of 1986, as
amended (the "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.
On March 1, 1999, the Fund declared a cash dividend of approximately $.0003
per share from undistributed investment income-net which includes investment
income-net for Saturday, February 27, 1999 and Sunday, February 28, 1999.
(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 applicable provisions of
the Code, and to make distributions of taxable income sufficient to relieve it
from substantially all Federal income and excise taxes.
The Fund has an unused capital loss carryover of approximately $576,000
available for Federal income tax purposes to be applied against future net
securities profits, if any, realized subsequent to February 28, 1999. If not
applied, $90,000 of the carryover expires in fiscal 2002, $126,000 expires in
fiscal 2003, $57,000 expires in fiscal 2004, $209,000 expires in fiscal 2005,
$84,000 expires in fiscal 2006 and $10,000 expires in fiscal 2007.
At February 28, 1999, 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).
DREYFUS BASIC MONEY MARKET FUND, INC.
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NOTES TO FINANCIAL STATEMENTS (CONTINUED)
NOTE 2--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement with the Manager, the management fee is
computed at the annual rate of .50 of 1% of the value of the Fund's average
daily net assets and is payable monthly. The Manager has undertaken, until such
time as it gives shareholders at least 90 days' notice to the contrary, to
reduce the management fee paid by the Fund, to the extent that the Fund's
aggregate annual expenses, exclusive of taxes, brokerage, interest on borrowings
and extraordinary expenses, exceed an annual rate of .45 of 1% of the value of
the Fund' s average daily net assets. The reduction in management fee, pursuant
to the undertaking, amounted to $2,340,179 during the period ended February 28,
1999.
(B) Under the Shareholder Services Plan, the Fund reimburses Dreyfus Service
Corporation, a wholly-owned subsidiary of the Manager, an amount not to exceed
an annual rate of .25 of 1% of the value of the Fund's average daily net assets
for certain allocated expenses of providing personal services and/or maintaining
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 period ended
February 28, 1999, the Fund was charged $550,109 pursuant to the Shareholder
Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of the
Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. During the period
ended February 28, 1999, the Fund was charged $299,201 pursuant to the transfer
agency agreement.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund an annual fee of $1,500 and an attendance fee of $250 per
meeting. The Chairman of the Board receives an additional 25% of such
compensation.
DREYFUS BASIC MONEY MARKET FUND, INC.
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REPORT OF ERNST & YOUNG LLP, 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, 1999, 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 and financial highlights. Our procedures included confirmation of
securities owned as of February 28, 1999 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, 1999, 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.
New York, New York
March 30, 1999
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[reg.tm logo]
(reg.tm)
DREYFUS BASIC
MONEY MARKET FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 123AR992
BASIC
Money Market
Fund, Inc.
Annual Report
February 28, 1999
