When am I "syncing" and when am I "streaming"?

[CanoodleAnoodle]

I have a playlist that I have downloaded so i can take offline, but I also use it when I'm at home with an internet connection. I have the sound quality under settings set to Extreme for streaming and Normal when I'm syncing. I'm fine with the quality being normal when I'm offline, but since i downloaded the songs, am I still experiencing Normal quality when I'm at home with the internet connection? Or does Spotify detect that I have an internet connection and it opts for streaming? Cause I want my music to be the highest quality when I'm at home.