Terms filter execution mode

I'm trying to understand the different execution modes for the terms
filter.
(http://www.elasticsearch.org/guide/en/elasticsearch/reference/current/query-dsl-terms-filter.html#_execution_mode)

And/Or execution modes seem self-explanatory.
The "bool" execution mode says "Generates a term filter (which is cached)
for each term, and wraps those in a bool filter. The bool filter itself is
not cached as it can operate very quickly on the cached term filters."
A bool filter, however, has more than one field for filter expressions
within it. Where do the generated term filters actually go? Into the
"must" section or "should" section? Is this configurable? (
http://www.elasticsearch.org/guide/en/elasticsearch/reference/current/query-dsl-bool-filter.html#query-dsl-bool-filter)
Or am I completely misunderstanding something?

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