Correct. Mostly.
The frequencies are true, since the transform shows or lists all of the frequencies possible. The amplitudes are incorrect, but the best based on the assumptions about what happens outside of the time sample we used.
This happens even when there is no modulation, so modulation has nothing to do with it.
They are sometimes called sidelobes instead of sidebands. The Fast in Fast FT has nothing to do with this problem. It happens because we take a finite time data sample. To get a complete view in the frequency domain we would have to look at an infinite amount of time. So we make an approximation. In this approximation process we start at a different value than we end with. This head to tale matching problem is the cause of the energy making this splatter. You see this problem by trying it with privileged frequencies. A privileged frequency could be one that has an exact (integer) number of cycles in the time aperture. For instance, if you sampled a 1 kHz sine wave at 1us samples for 0.1 second, you would have 100 cycles captured. Because the voltage at the start exactly matches the voltage at the end, there is no transient energy to create those sidelobes. This happens in non sampled (i.e.) analog system analysis also. It is an artifact.
You can sometimes ameliorate this affect by attempting head to tail match. You can search in from the two ends to find a better match in the sample values. Or you could make a larger aperture, o you could use what is called a window technique. For example, if you multiplied the very first and the very last samples by 0.1, then they would have a better match, and your sidelobes would be reduced.