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password hashes

I'm gathering from reading various sites that openldap doesn't allow a person to specify multiple hash algorithms in the slapd.conf file. Is this correct? If only one is able to be listed then when I specify a password in a custom client openldap will automatically hash the plaintext version of the password that I supply to it so that the password is stored in hashed form, is that correct?

One last question, if multiple hashes can't be listed in the slapd.conf, would a user be able to specify which type of hash he/she wishes to use when they go to change their password using a client or would the hash specifier (e.g. {MD5} ) become part of the password when that is attempted?