Location Services in Standby

Does location services continue to drain battery power if the phone is in standby? Does it also drain power if you're using an app that does not use location services? Thanks.

It can, which is no different when leaving wi-fi and bluetooth access on when not being used.
Standby or sleep mode with the iPhone turns the iPhone's screen off only. The iPhone is able to automatically check email accounts for new messages and receive SMS/MMS when the iPhone is in standby or sleep mode.
3rd party apps cannot run in the background.
I always leave Location Services on with my iPhone so I don't have to manually turn Location Services on every time I use an app that makes use of it, which is fairly often for me. I've experimented with a number of settings in the past as a test. I noticed no significant difference with battery consumption by turning Location Services off by itself when not being used.
http://www.apple.com/batteries/iphone.html

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