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i have a 1989 740 and mine is located on under the hood it the green 1 on the side next to the air filter
In the 1989 Volvo 740 GL with a Bosch system it is located just above the steering column on the dash.
If you mean the fuel pump relay, it is in the front row on the relay rack, to the extreme left (drivers side in US models.) It is a big white relay. You may download a diagram of Volvo 740 relays from the Internet. I always keep a set of spare relays with me because of failure issues due to overheating.
Fuel pump relay or Knock sensor if stall after maybe 2 miles
in the center console, under the Radio
Not necessarily, most do however.
allows power distribution to the overdrive solenoid for overdrive engagement.
pull out ashtray and lighter- realys are behind ashtray
They are at the back behind the ashtray, look in the gap at the top of the fuses.
Try overdrive relay, you can buy them anywhere, replace old one, it is very easy.. I had to replace one on my 88 740. Give it a shot before you let someone work on it.
http://www.brickboard.com/FAQ/700-900/ElectricalCircuitsRelays.htm#RelayLocations
under the left hand bumper