arguments passed - by reference of by value

The short answer is "neither", actually it is called "call by object” or “call by sharing"(you can check here for more info). The longer one starts with the fact that this terminology is probably not the best one to describe how Python works. In Python everything is an object and all variables hold references to objects. The values of these references are to the functions. As result you can not change the value of the reference but you can modify the object if it is mutable. Remember numbers, strings and tuples are immutable, list and dicts are mutable.