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Yes, that is correct. Please note that the browser only remembers the entries that you yourself have entered, in your browser. Other people that are using other browsers would not be able to see what was entered on your browser as a "password".
With that said, I would like to point out and stress the fact that this solution is only a sort of a workaround - to prevent a casual person or worker from filling out your form. It will not in any way password protect your form, and anyone on any browser can view the password that is set on such a form.
As an example, here is a form that our colleague Ashwin has set up to demonstrate the concept:
If you right-click on the form and View Page Source, you would see the "password" in clear view:
If you are concerned with password protecting your forms in a secure manner, I'm afraid that we do not offer such a solution at this time.
Still, this workaround solution is enough to prevent a casual snooper from filling out your form.
Please let us know if you have further questions regarding this, or kindly open a new thread for any other questions or problems you may have with your forms. We will be happy to help you.