The correct answer depends on the exam's goal. If you want to verify understanding the fundamentals, then a pencil and paper is all you should get. However that limits the complexity of the problem you can be asked. With a calculator you can do more complex problems - but the tool will do some things for you and so if you get the answer wrong there is no way to know if you failed on the fundamentals (you need to drop out of this class and be send to the lower level one) or the complexity (stay in this class).
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The correct answer depends on the exam's goal. If you want to verify understanding the fundamentals, then a pencil and paper is all you should get. However that limits the complexity of the problem you can be asked. With a calculator you can do more complex problems - but the tool will do some things for you and so if you get the answer wrong there is no way to know if you failed on the fundamentals (you need to drop out of this class and be send to the lower level one) or the complexity (stay in this class).