You're close, but allow me to expand:
Whether you use calculators or not will decide what kind of mathematics you are able to show. I've given my students tests both without and with calculators. Whether or not I let them use a calculator has nothing to do with "going easy" on them, or whatever. It will determine what ability my test can uncover.
If they do not use a calculator, I must keep the numbers low, or otherwise they'll spend ages on the algorithms instead of the actual maths I intended them to learn. And that's a problem, since your ability to solve problems with high numbers is the difference between "good" understanding and "excellent" understanding. Solve a simple 11x+7y=61 equation, fine. Ramp up the numbers, and the probability increases heavily that you will make a mistake if you do not know the procedure well enough. To do the latter you need calculators, because otherwise you're spending all the time solving problems irrelevant to the problem I wanted to check if you were able to solve.
A test without calculators will be a test to check your understanding of basic algorithms. A test with calculators will check your understanding of mathematical problems of a higher level than simple division/multiplication.
I often hear adults whine about how calculators ruined maths, and how thy got lower grades when they got calculators. They often lament how their grades went down after calculators were introduced, and blame it on the calcs. The reality is that their understanding of maths was low to begin with, and they were kept up only by their ability to perform algorithms, not their understanding of maths.
Finally, a quick question to the OP to check whether he has any knowledge, or is just another hypocrite:
The problem 101 multiplied by 99 should be solved by anyone wit good knowledge of maths in under 3 seconds, without the use on any help outside your mind. Can you do that?
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