Does Standby mean nothing is active?

If you've got your web browser open to check for emails on hotmail or whatever ...and you put the PB into Standby ... does it continue to check ... and do other apps continue to work ... or does Standby sort of put everything into a sleep or hybernation until you "wake it."
Thanks

I often access my device from my desktop computer to copy files to it while it is in standby, and the WiFi is turned on.

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