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Dexron is the wrong type.
In some instances, a mechanical or hydraulic device may be able to use a range of lubricants, yet when you use a specific lubricant, stick with it.
When I wrote that, I may have been confusing automatic transmission with power steering pumps. It is the rack, that more so, requires the "Type F". A rebuilt rack that came from a rear wheel drive Volvo would use the same lubricant specified originally for it.
The wonders of synthetic fluid allow it to meet a broader specification.
At any rate, the mechanic service is wrong in suggesting the use of any fluid type, and that it makes no difference.
An empty fluid reservoir may mean an air embolism remained after you drove away. Though a mechanic repair services knows this after draining the fluid away, if they did, and refilling the power steering fluid. An air embolism returning to the reservoir may have made power steering response and low speed lumpy. Using the wrong fluid, such as Dexron III like I did in my 1990 240 DL wagon took six months to ruin. Thanks, Haynes 240 manual. Stupid me. Poor me. Brake dust boy me.
If you refill the reservoir and you find it empty again, well, that is on the repair service you used.
Yet we look at the 1990 Volvo 740 owner manual from the Volvo website, and we see "Type F"
http://new.volvocars.com/ownersdocs/1990/1990_740/90740_24.htm#116
You can perform a fluid change, or flush, or have the mechanic do it, if you trust them.
Some would remove the fluid return line from the reservoir and allow it to pour into a large enough container. At least two quarts. With the power steering belt slacked enough you can spin the pump pulley in the same direction as the engine does when running. Slowly spin and the fluid return through the return line, and into your 2 quart or so container. As the fluid drains from the reservoir, add the proper fluid type. You could consider it an intermediate step change fluid, or not. Use mineral Type F or synthetic, like Redline Type F. Fill and spin. You may need to pour the waste oil into another waste oil bin for recycle.
Also, use a clean paper cloth so you can mark it with the different oil fluids for appearance by color so you know when the new fluid pushes through the return line so you know you don't use much.
It may help, after you moved maybe .5 quart, to turn the steering wheel lock to lock at least once if not three times, to press fluid out of the power steering bits on the rack. Maybe again after another .25 quart. Helps to raise the front of the Volvo 740 from the ground such that the wheels are free.
One a full quart goes through, dip a clean paper cloth to see the color and hope for new fluid, by then. If a good match, reconnect the return hose, and fill the reservoir. Check again.
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